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 make changes to W. Va. Code §11-15B-1, et seq., “Sales and Use Tax Administration,” updating provisions to conform to the Streamlined Sales and Use Tax Agreement. As written, this bill will update West Virginia’s Sales and Use Tax Administration Law with the Streamlined Sales and Use Tax Agreement, as in effect prior to January 31, 2010. Changes in the bill permit certain sellers to elect to register as a seller that anticipates making no sales in the State if the seller had no sales in West Virginia for the preceding twelve months. Such an election essentially provides an exemption from the requirement to file a periodic sales and use tax return. However, the seller loses the exemption upon making any taxable sales. Additionally, the bill requires the State Tax Commissioner to provide all nonexempt sellers a simplified electronically transmitted return and requires all remittances on such forms to be completed electronically. According to our interpretation, passage of this bill will result in conformity with the Governor’s official revenue estimates for FY2011. Additional administrative costs to the State Tax Department associated with this bill will be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 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 will update West Virginia’s Sales and Use Tax Administration Law with the Streamlined Sales and Use Tax Agreement, as in effect prior to January 31, 2010. Changes in the bill permit certain sellers to elect to register as a seller that anticipates making no sales in the State if the seller had no sales in West Virginia for the preceding twelve months. Such an election essentially provides an exemption from the requirement to file a periodic sales and use tax return. However, the seller loses the exemption upon making any taxable sales. Additionally, the bill requires the State Tax Commissioner to provide all nonexempt sellers a simplified electronically transmitted return and requires all remittances on such forms to be completed electronically. According to our interpretation, passage of this bill will result in conformity with the Governor’s official revenue estimates for FY2011. Additional administrative costs to the State Tax Department associated with this bill will be minimal.



Memorandum


The stated purpose of this bill is to make changes to W. Va. Code §11-15B-1, et seq., “Sales and Use Tax Administration,” updating provisions to conform to the Streamlined Sales and Use Tax Agreement. The title of the bill states, in part, “registration fees are addressed.” However, fees are not mentioned in the bill.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov