Date Requested:January 13, 2014
Time Requested:11:25 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1620 Introduced SB331
CBD Subject: ACCELERATED PAYMENT OF CERTAIN TAXES
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 require accelerated payment of consumers sales and service and use tax and employee withholding taxes in June of the taxable year.
    
     As written, this bill would reinstate an accelerated payment of Consumers Sales and Service Tax (and the complimentary Use Tax) and of Withholding Tax attributable to the first 15 days of June for Taxpayers whose average monthly payments in the previous calendar year exceeded $100,000. The proposed bill indicates the accelerated payment requirement is effective after, June 30, 2014. Thus, the first accelerated payment of Consumers Sales and Service Tax would be due on June 20, 2015 (with payments in subsequent years due on June 20) and the first accelerated payment of Withholding Tax would be due June 23, 2015 (with payments in subsequent years due on June 23).
    
     According to our interpretation, passage of this bill will increase General Revenue Fund collections by $30 million in FY2015. The increase of $30 million for FY2015 is included in the Governor’s official revenue estimates for FY2015. Failure to enact this bill will result in a $30 million decrease in the General Revenue Fund from the official revenue estimates for FY2015.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be $50,000 in FY2015.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 50,000 0
Personal Services 0 0 0
Current Expenses 0 50,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 30,000,000 0
3. Explanation of above estimates (including long-range effect):
     As written, this bill would reinstate an accelerated payment of Consumers Sales and Service Tax (and the complimentary Use Tax) and of Withholding Tax attributable to the first 15 days of June for Taxpayers whose average monthly payments in the previous calendar year exceeded $100,000. The proposed bill indicates the accelerated payment requirement is effective after, June 30, 2014. Thus, the first accelerated payment of Consumers Sales and Service Tax would be due on June 20, 2015 (with payments in subsequent years due on June 20) and the first accelerated payment of Withholding Tax would be due June 23, 2015 (with payments in subsequent years due on June 23).
    
     According to our interpretation, passage of this bill will increase General Revenue Fund collections by $30 million in FY2015. The increase of $30 million for FY2015 is included in the Governor’s official revenue estimates for FY2015. Failure to enact this bill will result in a $30 million decrease in the General Revenue Fund from the official revenue estimates for FY2015.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be $50,000 in FY2015 for the development of computer programs to identify the affected Taxpayers and for the notification of the accelerated payment provision to identified Taxpayers.


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