Date Requested:March 18, 2013
Time Requested:02:26 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2638 Introduced HB2936
CBD Subject: REGULATION OF FIREWORKS
FUND(S)
General Revenue Fund & the State Fire Commission’s Special Account
Sources of Revenue
Special Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The stated purpose of this bill is to revise, consolidate and codify laws relating to the purchase, possession, sale and use of fireworks in this state. The bill defines terms. The bill sets forth the State Fire Marshal’s authority. The bill requires a registration, certification or permit for fireworks. The bill establishes the requirements for a registration, certification and permit. The bill also establishes a special revenue account. The bill further sets forth the State Fire Marshal’s rule-making authority. The bill provides authority to investigate complaints, administrative fines and criminal penalties.
    
     As written, this bill repeals §11-12-86 of the West Virginia Code, which relates to the sparkler and novelty registration fee. Currently, the State Tax Department collects less than $10,000 per year from the sparkler and novelty registration fee. The proposed bill would require retailers of sparkling devices, novelties or toy caps to register with the State Fire Marshal and pay any associated fees to the State Fire Marshal. The State Tax Department would no longer administer and collect these fees.
    
     This bill proposes to regulate fireworks and creates a fireworks safety fee, in addition to the 6% Consumers Sales Tax on such items. The proposed bill provides that retailers of fireworks collect the “safety fee” and remit those fees to the State Treasurer to be deposited in the State Fire Commission’s “special account”. The State Treasurer would be responsible for the collection and administration of this new “fee”. The passage of this bill would result in a net gain of roughly $800,000 to the General Revenue Fund and a gain of between $800,000 to $850,000 to the State Fire Commission’s “special account”.
    
     There would be no additional administrative costs to the State Tax Department from the passage of this bill. However, the State Treasurer’s Office may incur some costs related to the administration and collection of the new fireworks safety fee.
    

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 0 0
3. Explanation of above estimates (including long-range effect):
     As written, this bill repeals §11-12-86 of the West Virginia Code, which relates to the sparkler and novelty registration fee. Currently, the State Tax Department collects less than $10,000 per year from the sparkler and novelty registration fee. The proposed bill would require retailers of sparkling devices, novelties or toy caps to register with the State Fire Marshal and pay any associated fees to the State Fire Marshal. The State Tax Department would no longer administer and collect these fees.
    
     This bill proposes to regulate fireworks and creates a fireworks safety fee, in addition to the 6% Consumers Sales Tax on such items. The proposed bill provides that retailers of fireworks collect the “safety fee” and remit those fees to the State Treasurer to be deposited in the State Fire Commission’s “special account”. The State Treasurer would be responsible for the collection and administration of this new “fee”. The passage of this bill would result in a net gain of roughly $800,000 to the General Revenue Fund and a gain of between $800,000 to $850,000 to the State Fire Commission’s “special account”.
    
     There would be no additional administrative costs to the State Tax Department from the passage of this bill. However, the State Treasurer’s Office may incur some costs related to the administration and collection of the new fireworks safety fee.
    


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