Date Requested:February 01, 2011
Time Requested:04:39 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2327 Introduced HB2968
CBD Subject: INCREASING THE SOFT DRINKS TAX
FUND(S)
State Parks Maintenance & Improvements Fund--Educational Programs Fund
Sources of Revenue
Special Fund
Legislation creates:
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 increase the soft drinks tax by 1¢ and dedicating the increase to construction, maintenance and improvements of state parks.
    
    The passage of this bill would result in additional Soft Drinks Tax revenue of roughly $15.2 million per year for the new State Parks Maintenance and Improvements Fund. This estimate includes consumption declines in response to price increases associated with changes in tax rates. There may also be a slight decline in revenue for the Medical Center - Educational Programs Fund because of the decline in consumption due to higher prices associated with the tax increase. Currently, Soft Drinks Tax revenue is used to provide revenue for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing of West Virginia University.
    
    Additional administrative costs to the State Tax Department would be $77,000 during the current fiscal year due to programming changes and notifying taxpayers of the rate change. Thereafter, there would be no additional costs.

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 77,000 0 0
Personal Services 200 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 76,800 0 0
2. Estimated Total Revenues 0 0 15,200,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to increase the soft drinks tax by 1¢ and dedicating the increase to construction, maintenance and improvements of state parks.
    
    The passage of this bill would result in additional Soft Drinks Tax revenue of roughly $15.2 million per year for the new State Parks Maintenance and Improvements Fund. This estimate includes consumption declines in response to price increases associated with changes in tax rates. There may also be a slight decline in revenue for the Medical Center - Educational Programs Fund because of the decline in consumption due to higher prices associated with the tax increase. Currently, Soft Drinks Tax revenue is used to provide revenue for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing of West Virginia University.
    
    Additional administrative costs to the State Tax Department would be $77,000 during the current fiscal year due to programming changes and notifying taxpayers of the rate change. Thereafter, there would be no additional costs.
    


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