Date Requested:February 17, 2010
Time Requested:03:18 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2010R2161 Introduced HB4521
CBD Subject: SALES TAX HOLIDAY FOR GUNS & AMMUNITION
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 purchase of firearms during the first weekend of October from the sales tax imposed by §11-15.
    
    As written, the passage of this bill could result in a loss of roughly $25,000 per year to the General Revenue Fund.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    

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 -25,000 -25,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to exempt the purchase of firearms during the first weekend of October from the sales tax imposed by §11-15.
    
    As written, the passage of this bill could result in a loss of roughly $25,000 per year to the General Revenue Fund.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to exempt the purchase of firearms during the first weekend of October from the sales tax imposed by §11-15.
    
    This bill violates Section 322: Sales Tax Holidays of the Streamline Sales and Service Tax Agreement, amended 2008, of which West Virginia is a member. Section 322 (A)(1) states that:
    
    A. If a member state allows for temporary exemption periods, commonly referred to as sales tax holidays, the member state shall:
    
    1. Not apply an exemption unless the items to be exempted are specifically defined in Part II or Part III(B) of the Library of Definitions and the exemptions are uniformly applied to state and local sales and use taxes.
    
    The term “firearms” is not defined in “Part II or Part III(B) of the Library of Definitions” in the Agreement, thus West Virginia cannot provide for a sales tax holiday for the purchase of these items. Also, the bill lacks an effective date.