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 exempt the sale of the services of shredding and recycling of paper and paper products from the consumer sales tax.
As written, the passage of this bill could result in a loss to the General Revenue Fund of roughly $1 million per year.
Additional administrative costs to the State Tax Department would be minimal during the current fiscal year. Thereafter, there would be no additional administrative costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
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 |
-1,000,000 |
-1,000,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to exempt the sale of the services of shredding and recycling of paper and paper products from the consumer sales tax.
As written, the passage of this bill could result in a loss to the General Revenue Fund of roughly $1 million per year.
Additional administrative costs to the State Tax Department would be minimal during the current fiscal year. Thereafter, there would be no additional administrative costs.
Memorandum
The stated purpose of this bill is to exempt the sale of the services of shredding and recycling of paper and paper products from the consumer sales tax.
This bill provides no definition of the words “shredding” and “recycling”. While “shredding” maybe self-explanatory, “recycling” could encompass many different activities and could be broad in nature. Also, there is no guidance on the scale of the services being sold.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us