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


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


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