Date Requested:January 20, 2011
Time Requested:03:30 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1506 Introduced HB2685
CBD Subject: EXEMPT ESTATE OF DECEASED INFANT
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 provide an exemption from estate taxes and from the Consumer Sales and Service Tax for certain expenses of any infant who dies before reaching one year of age.
    
    According to our interpretation and based upon available data, passage of this bill would result in no decrease to the General Revenue Fund from the exemption to West Virginia’s Estate Tax and a minimal decrease in the General Revenue Fund resulting from the Consumers Sales and Service Tax exemption.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    

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 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
3. Explanation of above estimates (including long-range effect):
    This bill provides that funerals of any infant who dies before reaching one year of age be exempt from estate taxes and from Consumers Sales and Service Tax for certain expenses. West Virginia’s Estate Tax does not apply to deaths occurring on or after January 1, 2005. Thus, the purposed exemption from estate taxes for infants would have no effect on the General Revenue Fund. The new sales tax exemption created in W. Va. Code § 11-15-9(a)(50) consists of the list of things which are taxable as set forth in Section 59 of the Sales Tax regulations. Thus, those items, as well as the list of exempt items in Section 59, would be exempt. Due to the low number of infant deaths in West Virginia and the policy of certain funeral homes to charge nothing for the funeral of infants, the reduction to the General Revenue Fund would be minimal.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to provide an exemption from estate taxes and from the Consumer Sales and Service Tax for certain expenses of any infant who dies before reaching one year of age.
    
    West Virginia’s Estate Tax does not apply to deaths occurring on or after January 1, 2005. Thus, the purposed exemption from estate taxes for infants would have no effect on the General Revenue Fund.