Date Requested:January 12, 2011
Time Requested:04:44 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1073 Introduced HB2294
CBD Subject: EXCISE TAX ON OBSCENE MATERIALS
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 produce revenue by imposition of a tax upon the sale or rental of obscene materials.
    
    As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
    
    Additional administrative costs to the State Tax Department would be $153,600 in FY2012 due to programming costs associated with the new tax created by the passage of this bill. Thereafter, there would be no additional administrative costs.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 153,600 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 153,600 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 produce revenue by imposition of a tax upon the sale or rental of obscene materials.
    
    As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically.
    
    Additional administrative costs to the State Tax Department would be $153,600 in FY2012 due to programming costs associated with the new tax created by the passage of this bill. Thereafter, there would be no additional administrative costs.
    


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