Date Requested:January 16, 2012
Time Requested:03:33 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1271 Introduced HB4083
CBD Subject: CHURCH-RELATED ORGANIZATIONS
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 provide a consumer sales and service tax exemption to nonprofit, tax exempt corporations or organization affiliated with a church of association of churches.
    
    As written, this bill expands the current sales tax exemption for sales of tangible personal property or services to churches in W.V. Code §11-15-9(a)(6)(A) to include nonprofit corporations formed by or affiliated with any 501(3)(c) church, convention or association of churches. We do not have enough available information on the number of such nonprofit corporations or their purchases to estimate the loss to the General Revenue Fund from the passage of this bill.
    
    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
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):
    The stated purpose of this bill is to provide a consumer sales and service tax exemption to nonprofit, tax exempt corporations or organization affiliated with a church of association of churches.
    
    This bill expands the current sales tax exemption for sales of tangible personal property or services to churches in W.V. Code §11-15-9(a)(6)(A) to include nonprofit corporations formed by or affiliated with any 501(3)(c) church, convention or association of churches. We do not have enough available information on the number of such nonprofit corporations or their purchases to estimate the loss to the General Revenue Fund from the passage of this bill.
    
    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
    The stated purpose of this bill is to provide a consumer sales and service tax exemption to nonprofit, tax exempt corporations or organization affiliated with a church of association of churches.
    
    W.V. Code §11-15-9(a)(6) exempts sales of tangible personal property or services to organizations exempt from federal income taxes under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of 1986. This bill expands the current sales tax exemption for sales of tangible personal property or services to churches in W.V. Code §11-15-9(a)(6)(A) to include nonprofit corporations formed by or affiliated with any 501(3)(c) church, convention or association of churches. This could open the current exemption to organizations that engage in business activities, including renting or leasing property to the public.