Date Requested:February 01, 2011
Time Requested:04:27 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2391 Introduced HB2977
CBD Subject: ELIMINATE SALES TAX ON FOOD
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 eliminate the sales tax on food beginning July 1, 2011.
    
    As stated, the passage of this bill would eliminate the Consumers Sales Tax on food for home consumption beginning on July 1, 2011. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2013 represents the first full year effect of the elimination of the Consumers Sales Tax on food sold for home consumption.
    
    Sales of Food Meant for Home Consumption Only
    
    FY2012 -$71.5 million
    FY2013 -$78.0 million
    
    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 -71,500,000 -78,000,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to eliminate the sales tax on food beginning July 1, 2011.
    
    As stated, the passage of this bill would eliminate the Consumers Sales Tax on food for home consumption beginning on July 1, 2011. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2013 represents the first full year effect of the elimination of the Consumers Sales Tax on food sold for home consumption.
    
    Sales of Food Meant for Home Consumption Only
    
    FY2012 -$71.5 million
    FY2013 -$78.0 million
    
    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