FISCAL NOTE
FUND(S):
General Revenue Fund, Regional Jail Operations Partial Reimbursement Fund
Sources of Revenue:
General Fund,Other 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 increase the barrel tax on nonintoxicating beer and allocate fifty percent of the tax to the Regional Jail Operations Partial Reimbursement Fund.
As written, this bill would increase the barrel tax on nonintoxicating beer from $5.50 per barrel to $11.00 per barrel and would allocate 50 percent of the total Beer Barrel Tax to the Regional Jail Operations Partial Reimbursement Fund. Passage of this bill would result in a net revenue gain of roughly $7.5 million per year. The Regional Jail Operations Partial Reimbursement Fund would receive additional revenue of roughly $7.5 million annually, or 50 percent of total Beer Barrel Tax revenues while there would be a slight decrease in General Revenue Fund collections.
Additional administrative costs to the State Tax Department would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
400 |
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 |
Explanation of above estimates (including long-range effect):
As written, this bill would increase the barrel tax on nonintoxicating beer from $5.50 per barrel to $11.00 per barrel and would allocate 50 percent of the total Beer Barrel Tax to the Regional Jail Operations Partial Reimbursement Fund. Passage of this bill would result in a net revenue gain of roughly $7.5 million per year. The Regional Jail Operations Partial Reimbursement Fund would receive additional revenue of roughly $7.5 million annually, or 50 percent of total Beer Barrel Tax revenues while there would be a slight decrease in General Revenue Fund collections.
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us