Date Requested:March 09, 2009
Time Requested:05:41 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009R2556 Introduced HB3017
CBD Subject: CLOTHING SALES BY RELIGIOUS ORGANIZATIONS
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 from the consumers sales tax and use tax any sales of donated clothing or clothing accessories sold at retail to the public by churches or religious organizations that are exempt from federal income taxes under Section 501 (c)(3) or Section 501 (c)(4) of the Internal Revenue Code of 1986, as amended. The bill also authorizes the Tax Commissioner to designate, by rule, the exemption as a per se exemption, thus obviating the need for exemption certificates.
    
    As written, the passage of this bill would result in minimal revenue loss to the General Revenue Fund.
    
    Also, additional administrative costs to the State Tax Department would be minimal.
    

Fiscal Note Detail
Over-all effect
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 0 0
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to exempt from the consumers sales tax and use tax any sales of donated clothing or clothing accessories sold at retail to the public by churches or religious organizations that are exempt from federal income taxes under Section 501 (c)(3) or Section 501 (c)(4) of the Internal Revenue Code of 1986, as amended. The bill also authorizes the Tax Commissioner to designate, by rule, the exemption as a per se exemption, thus obviating the need for exemption certificates.
    
    As written, the passage of this bill would result in minimal revenue loss to the General Revenue Fund.
    
    Also, 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