Date Requested:January 25, 2011
Time Requested:11:43 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1239 Introduced HB2814
CBD Subject: RETURNABLE BEVERAGE CONTAINER DEPOSIT PROGRAM
FUND(S)
Returnable Container Deposit Fund & General Revenue Fund
Sources of Revenue
General Fund,Special Fund
Legislation creates:
A New Program,A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to establish a program to recycle beverage containers and reduce litter. The bill requires the use of returnable containers for many beverages and requires the use of a five cent deposit; exempts deposits on containers from sales taxes and excludes deposits from business and occupation taxes; prescribes the powers and duties of DEP; and prescribes penalties and remedies.
    
    As written, most of the responsibilities of the bill are placed upon the State Department of Environmental Protection. However, the bill provides that the deposits are exempt from the Consumers Sales and Service Tax (Section 22-15A-31(f)). This provision would reverse current Sales Tax regulations, which state that “deposits charged by vendors for reusable containers are subject to tax..” (110 C.S.R. 15, Section 110-15-32.3.1). There may be minimal revenue loss to the General Revenue Fund from the passage of this bill.
    
    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
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):
    The stated purpose of this bill is to establish a program to recycle beverage containers and reduce litter. The bill requires the use of returnable containers for many beverages and requires the use of a five cent deposit; exempts deposits on containers from sales taxes and excludes deposits from business and occupation taxes; prescribes the powers and duties of DEP; and prescribes penalties and remedies.
    
    As written, most of the responsibilities of the bill are placed upon the State Department of Environmental Protection. However, the bill provides that the deposits are exempt from the Consumers Sales and Service Tax (Section 22-15A-31(f)). This provision would reverse current Sales Tax regulations, which state that “deposits charged by vendors for reusable containers are subject to tax..” (110 C.S.R. 15, Section 110-15-32.3.1). There may be minimal revenue loss to the General Revenue Fund from the passage of this bill.
    
    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