Date Requested:February 15, 2013
Time Requested:03:40 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1207 Introduced HB2321
CBD Subject: BARREL TAX ON NONINTOXICATING BEER
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 increase the barrel tax on nonintoxicating beer.
    
     As written, this bill proposes to raise the Beer Barrel Tax from the current rate of $5.50 per barrel to $11 per barrel, effective July 1, 2013.
    
     According to our interpretation, passage of this bill would result in an increase in the General Revenue Fund of roughly $6.4 million in FY2014 and roughly $6.9 million per year thereafter. The increased tax yield would be less than double the current tax yield due to the expectation of some sales decline due to higher consumer prices associated with the tax increase.
    
     Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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 6,400,000 6,900,000
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, effective July 1, 2013.
    
     According to our interpretation, passage of this bill would result in an increase in the General Revenue Fund of roughly $6.4 million in FY2014 and roughly $6.9 million per year thereafter. The increased tax yield would be less than double the current tax yield due to the expectation of some sales decline due to higher consumer prices associated with the tax increase.
    
     Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov