FISCAL NOTE
FUND(S):
7351
Sources of Revenue:
General Fund
Legislation creates:
A New Program,A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Tax is handling the issues with respect to increasing the Beer Barrel Tax from $5.50 to $11 and increasing the Wine Liter Tax from 26.406 cents to 52.812 cents.
Remember taxes are likely passed on to the end consumer. Also regressive taxes may raise revenue but can have a secondary impact of decreasing volume and thereby negatively impacting revenue.
With respect to language in W.Va. Code 60-3A-17, this language would essentially double the WVABCA's required transfers. In W.Va. Code 60-3A-17, section (b) uses the same language as in section (a) and this language has the practical effect of requiring the WVABCA to transfer the equivalent of what it transfers annually to General Revenue also annually to the Prevention Trust Fund.
For FY 2010 the WVABCA transferred $12,150,000, in FY 2009 $14,800,000 and in FY 2008 $13,000,000 for average of $13,316,667.
This bill would require the WVABCA to establish wholesale prices to retail liquor outlets that would generate an additional $13,316,667 for a total transfer of $26,633,334.
Raising prices on consumers using by such a high margin would likely have a negative impact on sales volume thus requiring an even greater rise in the markup for retail pricing to consumers in order to achieve the desired amount of $26,633,334 in revenue transfers.
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 |
13,316,667 |
13,316,667 |
13,316,667 |
| 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 |
13,316,667 |
13,316,667 |
13,316,667 |
Explanation of above estimates (including long-range effect):
For FY 2010 the WVABCA transferred $12,150,000, in FY 2009 $14,800,000 and in FY 2008 $13,000,000 for average of $13,316,667.
This bill would require the WVABCA to establish wholesale prices to retail liquor outlets that would generate an additional $13,316,667 for a total transfer of $26,633,334.
Raising prices on consumers using by such a high margin would likely have a negative impact on sales volume thus requiring an even greater rise in the markup for retail pricing to consumers in order to achieve the desired amount of $26,633,334 in revenue transfers.
Memorandum
Tax is handling the issues with respect to increasing the Beer Barrel Tax from $5.50 to $11 and increasing the Wine Liter Tax from 26.406 cents to 52.812 cents.
Remember taxes are likely passed on to the end consumer. Also regressive taxes may raise revenue but can have a secondary impact of decreasing volume and thereby negatively impacting revenue.
With respect to language in W.Va. Code 60-3A-17, this language would essentially double the WVABCA's required transfers. In W.Va. Code 60-3A-17, section (b) uses the same language as in section (a) and this language has the practical effect of requiring the WVABCA to transfer the equivalent of what it transfers annually to General Revenue also annually to the Prevention Trust Fund.
For FY 2010 the WVABCA transferred $12,150,000, in FY 2009 $14,800,000 and in FY 2008 $13,000,000 for average of $13,316,667.
This bill would require the WVABCA to establish wholesale prices to retail liquor outlets that would generate an additional $13,316,667 for a total transfer of $26,633,334.
Raising prices on consumers using by such a high margin would likely have a negative impact on sales volume thus requiring an even greater rise in the markup for retail pricing to consumers in order to achieve the desired amount of $26,633,334 in revenue transfers.
Person submitting Fiscal Note: Anoop Bhasin on behalf of WVABCA
Email Address: Anoop.K.Bhasin@wv.gov