Date Requested:January 26, 2008
Time Requested:02:27 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2008R1444 Introduced HB4305
CBD Subject: ENERGY SALES TAX HOLIDAY
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 create a limited sales tax holiday for purchases of certain Energy Star appliances and devices over a three-day period, beginning June 20, 2008.
    
    Notwithstanding the stated purpose, the bill as written provides for an annual seven day sales tax holiday on sales of Energy Star qualified products beginning on September 1st and ending September 7th. The holiday is limited to those products priced $2,500 or less per purchase. As written, the passage of this bill would result in a loss to the General Revenue Fund of roughly $300,000 per year.
    
    Additional administrative costs to the State Tax Department would be $39,000 during the current fiscal year due to notifying taxpayers of the sales tax holiday. Thereafter, costs would be $6,750 per year.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 39,000 6,750 6,750
Personal Services 0 0 0
Current Expenses 39,000 6,750 6,750
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -300,000 -300,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to create a limited sales tax holiday for purchases of certain Energy Star appliances and devices over a three-day period, beginning June 20, 2008.
    
    Notwithstanding the stated purpose, the bill as written provides for an annual seven day sales tax holiday on sales of Energy Star qualified products beginning on September 1st and ending September 7th. The holiday is limited to those products priced $2,500 or less per purchase. As written, the passage of this bill would result in a loss to the General Revenue Fund of roughly $300,000 per year.
    
    Additional administrative costs to the State Tax Department would be $39,000 during the current fiscal year due to notifying taxpayers of the sales tax holiday. Thereafter, costs would be $6,750 per year.
    


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