Date Requested:March 22, 2005
Time Requested:05:05 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1905 Intro SB705
CBD Subject: Municipal Sales & Service Tax
FUND(S)
Tax Department Municipal Sales & Use Tax Operations Fund
Sources of Revenue
Other Fund
Legislation creates:
A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to delay (i.e., until July 1, 2008) the effective date of the Municipal Sales and Service and Use Tax. The delay is perceived as being necessary until the Tax Commissioner has sufficient time to install a new computer system that can process these taxes and properly account for the taxes collected. A special revenue account would be created in the Treasury for deposit of the Tax Commissioner’s fee for administration and collection of the Municipal Sales, Service and Use Tax. Technical and clerical corrections are also included.
    
    Passage of this bill would delay from July 1, 2005 to July 1, 2008 the effective date of the Municipal Sales and Use Tax legislation enacted in 2004. The collection, enforcement and administration of the municipal sales and use tax is the responsibility of the Tax Commissioner. However, a new computer system is necessary to properly account for the sales and use tax by locality. The delay in the effective date of the tax will permit the Tax Department to secure the necessary computer hardware and software for administering the tax.
    
    There would be no additional administrative costs for the Tax Department.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would delay from July 1, 2005 to July 1, 2008 the effective date of the Municipal Sales and Use Tax legislation enacted in 2004. The collection, enforcement and administration of the municipal sales and use tax is the responsibility of the Tax Commissioner. However, a new computer system is necessary to properly account for the sales and use tax by locality. The delay in the effective date of the tax will permit the Tax Department to secure the necessary computer hardware and software for administering the tax. Also, a special revenue account would be created in the Treasury for deposit of the Tax Commissioner’s fee for administration and collection of the Municipal Sales, Service and Use Tax. Technical and clerical corrections are also included.
    
    There would be no additional administrative costs associated with this bill.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us