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 reinstate the sales tax exemption for comprehensive community mental health care centers and comprehensive mental retardation facilities.
As written, the bill would provide an exemption from the Consumers Sales and Service Tax for services rendered by nonprofit comprehensive community mental health care centers and comprehensive mental retardation facilities. The State Tax Department does not have access to the data necessary to estimate the potential reduction in revenue that would result from passage of this bill.
Additional administrative costs to the State Tax Department associated with this bill would be minimal.
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Passage of this bill would provide an exemption from the Consumers Sales and Service Tax for services rendered by nonprofit comprehensive community mental health care centers and comprehensive mental retardation facilities. The State Tax Department does not have access to the data necessary to estimate the potential reduction in revenue that would result from passage of this bill.
Additional administrative costs to the State Tax Department associated with this bill would be roughly $4,000 in Fiscal Year 2007. The additional costs would be for notifying taxpayers of the exemption.
Memorandum
The stated purpose of this bill is to reinstate the sales tax exemption for comprehensive community mental health care centers and comprehensive mental retardation facilities.
As written, the bill would provide an exemption from the Consumers Sales and Service Tax for services rendered by nonprofit comprehensive community mental health care centers and comprehensive mental retardation facilities. Since the professional services provided by nonprofit comprehensive community mental health care centers and comprehensive mental retardation facilities to their clients are already exempt, this bill apparently would exempt from the Consumers Sales and Service Tax services, such as “supported employment,” that the indicated entities provide. The “supported employment” programs are often in competition with for-profit entities. Thus, passage of this exemption may raise federal constitutional issues under the Commerce Clause.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us