Date Requested:January 24, 2011
Time Requested:04:46 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1511 Introduced HB2774
CBD Subject: INCREASE BARREL TAX ON NONINTOXICATING BEER
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 increase the barrel tax on nonintoxicating beer.
    
    As written, this bill would increase the barrel tax on nonintoxicating beer from $5.50 per barrel to $11.00 per barrel. Passage of this bill would result in a net revenue gain of roughly $6.8 million in FY2012 and approximately $7.4 million per year thereafter.
    
    Additional administrative costs to the State Tax Department would be $25,700 during the current fiscal year due to programming changes and to notify taxpayers of the rate change.
    

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 25,700 0 0
Personal Services 0 0 0
Current Expenses 100 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 25,600 0 0
2. Estimated Total Revenues 0 6,800,000 7,400,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to increase the barrel tax on nonintoxicating beer.
    
    As written, this bill would increase the barrel tax on nonintoxicating beer from $5.50 per barrel to $11.00 per barrel. Passage of this bill would result in a net revenue gain of roughly $6.8 million in FY2012 and approximately $7.4 million per year thereafter.
    
    Additional administrative costs to the State Tax Department would be $25,700 during the current fiscal year due to programming changes and to notify taxpayers of the rate change.
    


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