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 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


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


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