Date Requested:January 14, 2012
Time Requested:01:21 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2766 Carry Over HB3178
CBD Subject: FUNDING FOR SUBSTANCE ABUSE
FUND(S)
General Revenue Fund, Prevention, Intervention, Treatment and Recovery 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 provide funding for substance abuse services through increased taxes on beer, wine and liquor. The bill increases the barrel tax on nonintoxicating beer, increases the tax on purchases of liquor and wine, and increases the liter tax. The bill creates a Prevention, Intervention, Treatment and Recovery Fund to fund substance abuse programs. The bill creates the Alcohol and Drug Disbursement Board. The bill sets forth the board’s membership and term lengths. The bill also requires annual reports to be made to the legislature.
    
    As written, this bill proposes to raise the Beer Barrel Tax from the current rate of $5.50 per barrel to $11 per barrel and the Wine Liter Tax from the current rate of 26.402 cents per liter to 52.812 cents per liter. The bill provides that $5.50 of the Beer Barrel Tax and 26.402 cents of the Wine Liter Tax be deposited into the new Prevention, Intervention, Treatment and Recovery Fund. As a result, approximately $9.2 million will be deposited in the new fund annually. There would be a slight decrease in General Revenue Fund collections due to a decline in consumption from the increased tax rate on beer and wine.
    
    This bill also proposes to make changes to the taxation of liquor under Chapter 60 of the West Virginia Code. This change is addressed in the fiscal note from the Alcohol Beverage Control Commission.
    
    Additional administrative costs to the State Tax Department from passage of this bill would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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):
    As written, this bill proposes to raise the Beer Barrel Tax from the current rate of $5.50 per barrel to $11 per barrel and the Wine Liter Tax from the current rate of 26.402 cents per liter to 52.812 cents per liter. The bill provides that $5.50 of the Beer Barrel Tax and 26.402 cents of the Wine Liter Tax be deposited into the new Prevention, Intervention, Treatment and Recovery Fund. As a result, approximately $9.2 million will be deposited in the new fund annually. There would be a slight decrease in General Revenue Fund collections due to a decline in consumption from the increased tax rate on beer and wine.
    
    This bill also proposes to make changes to the taxation of liquor under Chapter 60 of the West Virginia Code. This change is addressed in the fiscal note from the Alcohol Beverage Control Commission.
    
    Additional administrative costs to the State Tax Department from passage of this bill would be minimal.
    


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