FISCAL NOTE
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to produce revenue by imposition of a tax upon the sale or rental of obscene materials.
As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
Additional administrative costs to the State Tax Department would be $20,500 during the current fiscal year due to notifying taxpayers of the new tax and obtaining additional computers and office equipment. Thereafter, additional administrative costs would be about $23,500 per year due to the hiring of a new employee to administer this new tax, plus printing of new tax returns, postage and supplies.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
20,500 |
23,502 |
23 |
| Personal Services |
0 |
20,760 |
20,760 |
| Current Expenses |
4,500 |
2,742 |
2,742 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
16,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to produce revenue by imposition of a tax upon the sale or rental of obscene materials.
As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
Additional administrative costs to the State Tax Department would be $20,500 during the current fiscal year due to notifying taxpayers of the new tax and obtaining additional computers and office equipment. Thereafter, additional administrative costs would be about $23,500 per year due to the hiring of a new employee to administer this new tax, plus printing of new tax returns, postage and supplies.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us