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 provide to health care providers an exemption from sales tax for purchases of drugs, durable medical goods, mobility enhancing equipment and prosthetic devices to be dispensed upon prescription and intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans.
According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of approximately $10.0 million per year.
Additional administrative cost to the State Tax Department associated with passage of this bill would be approximately $4,000.
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 |
4,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
4,000 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-10,000,000 |
-10,000,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to provide to health care providers an exemption from sales tax for purchases of drugs, durable medical goods, mobility enhancing equipment and prosthetic devices to be dispensed upon prescription and intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans.
According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of approximately $10.0 million per year.
Additional administrative cost to the State Tax Department associated with passage of this bill would be approximately $4,000.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us