Date Requested:February 08, 2005
Time Requested:06:30 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R592 Intro SB58
CBD Subject: Beverage Containers
FUND(S)
Bottle Deposit Fund
Sources of Revenue
Other Fund Bottle Deposit 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 require the use of returnable containers for soft drinks, soda water, carbonated natural or mineral water, other nonalcoholic carbonated drinks and for beer, ale or other malt drinks of any alcoholic content and for certain other beverage containers. It also provides for the use of unredeemed bottle deposits; prescribes the powers and duties of certain state agencies and officials; and prescribes penalties and remedies.
    
    As written, most of the responsibilities of the bill are placed upon the Alcohol Beverage Control Commission. However, the bill authorizes the Tax Commissioner to audit, assess and collect the amount of money reflecting unclaimed bottle deposits owed to the State and enforce the obligation of that amount, “in the same manner as revenues and according to the provisions of chapter eleven of this code” (WV Code §20-10-5(a)). These collections are to be deposited into the Bottle Deposit Fund and may not be reverted into the General Revenue Fund.
    
    Due to the lack of available data, we are unable to accurately estimate the amount of unredeemed bottle deposits that would be deposited into the Bottle Deposit Fund. Also, this amount would depend on the State’s redemption rate (i.e., the higher the rate of redemption, the lower the amount of unredeemed deposits that would belong to the State).
    
    Additional administrative costs to the Tax Department would be approximately $41,000 next fiscal year for an additional tax audit clerk, personal computer, notification to taxpayers and data processing costs. Thereafter, additional administrative costs would be about $25,000 per year.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 40,760 24,760
Personal Services 0 20,760 20,760
Current Expenses 0 4,000 4,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 16,000 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    As written, most of the responsibilities of the bill are placed upon the Alcohol Beverage Control Commission. However, the bill authorizes the Tax Commissioner to audit, assess and collect the amount of money reflecting unclaimed bottle deposits owed to the State, and enforce the obligation of that amount, “in the same manner as revenues and according to the provisions of chapter eleven of this code” (WV Code §20-10-5(a)). These collections are to be deposited into the Bottle Deposit Fund, and may not be reverted into the General Revenue Fund.
    
    Due to the lack of available data, we are unable to accurately estimate the amount of unredeemed bottle deposits that would be deposited into the Bottle Deposit Fund. Also, this amount would depend on the State’s redemption rate (i.e., the higher the rate of redemption, the lower the amount of unredeemed deposits that would belong to the State).
    
    Additional administrative costs to the Tax Department would be $40,760 next fiscal year for an additional tax audit clerk, personal computer, notification to taxpayers and data processing costs. Thereafter, additional administrative costs would be $24,760 per year.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us