Date Requested:February 11, 2010
Time Requested:04:24 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2010R1867 Introduced SB545
CBD Subject: DRUNK DRIVING VICTIMS' COMPENSATION FUND
FUND(S)
General Revenue Fund and the Drunk Driving Victims' Compensation Fund
Sources of Revenue
General Fund,Special Fund
Legislation creates:
A New Program,A New 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 the Drunk Driving Victims’ Compensation Fund to assist with the costs associated with injuries, deaths and property losses associated with drunk driving crashes. The bill provides for increases in the barrel tax on nonintoxicating beer, wine liter tax, and tax on purchases of liquor. The bill further provides that these increases will all go to fund the Drunk Driving Victims’ Compensation Fund.
    
    As written, this bill would increase the Beer Barrel Tax rate from the current $5.50 per barrel to $8.80 per barrel. Also, it would increase the Wine Liter Tax from 26.046¢ to 27.046¢ per liter and the tax on liquor from 5 percent to 6 percent. The additional revenue from these tax rate increases are to be paid into the Drunk Driving Victims’ Compensation Fund. As a result, the net gain in revenue from the passage of this bill would be about $5.5 million per year for the Drunk Driving Victims’ Compensation Fund. There would be a slight decrease in General Revenue Fund collections due to a decline in consumption from the increased tax rate on beer and wine. Also, there maybe a slight decline in liquor tax collections to be distributed to counties and municipalities (W.Va. Code §60-3A-21) from the increased tax rate on retail sales of liquor.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill. However, the Department of Public Safety’s Commission on Drunk Driving Prevention may incur additional costs to administer the Drunk Driving Victims’ Compensation Fund.
    

Fiscal Note Detail
Over-all effect
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 5,500,000 5,500,000
3. Explanation of above estimates (including long-range effect):
    As written, this bill would increase the Beer Barrel Tax rate from the current $5.50 per barrel to $8.80 per barrel. Also, it would increase the Wine Liter Tax from 26.046¢ to 27.046¢ per liter and the tax on liquor from 5 percent to 6 percent. The additional revenue from these tax rate increases are to be paid into the Drunk Driving Victims’ Compensation Fund. As a result, the net gain in revenue from the passage of this bill would be about $5.5 million per year for the Drunk Driving Victims’ Compensation Fund. There would be a slight decrease in General Revenue Fund collections due to a decline in consumption from the increased tax rate on beer and wine. Also, there maybe a slight decline in liquor tax collections to be distributed to counties and municipalities (W.Va. Code §60-3A-21) from the increased tax rate on retail sales of liquor.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill. However, the Department of Public Safety’s Commission on Drunk Driving Prevention may incur additional costs to administer the Drunk Driving Victims’ Compensation Fund.
    
    


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