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 specify that, notwithstanding imposition of the sales tax on other sales of tangible personal property sold by a farmer or farmer’s family member, the exemption for sales of livestock, poultry or other farm products in their original state that are sold by the producer or a member of the producer’s immediate family will remain in effect.
According to our interpretation, the passage of this bill would clarify the current sales tax exemption for sales of livestock at public auctions and sales of other farm products in their original state by the producer of the livestock and other farm products. This bill provides that these producers must collect and remit sales tax on sales of all other tangible personal property and on sales of other producers’ livestock or farm products sold in their original state, but sales of their own produce would be exempt. There would be minimal revenue consequences associated with the passage of this bill.
There would be no additional administrative costs to the State Tax Department.
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):
The stated purpose of this bill is to specify that, notwithstanding imposition of the sales tax on other sales of tangible personal property sold by a farmer or farmer’s family member, the exemption for sales of livestock, poultry or other farm products in their original state that are sold by the producer or a member of the producer’s immediate family will remain in effect.
According to our interpretation, the passage of this bill would clarify the current sales tax exemption for sales of livestock at public auctions and sales of other farm products in their original state by the producer of the livestock and other farm products. This bill provides that these producers must collect and remit sales tax on sales of all other tangible personal property and on sales of other producers’ livestock or farm products sold in their original state, but sales of their own produce would be exempt. There would be minimal revenue consequences associated with the passage of this bill.
There would be no additional administrative costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov