Date Requested:February 09, 2005
Time Requested:02:57 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005r107 intro hb2036
CBD Subject: food tax eliminated
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 exempt the sale of food not consumed on the premises from the consumers sales tax.
    
    The passage of this bill would result in a loss to the General Revenue Fund of about $152 million annually. Although the bill does not specifically define food, the estimate assumes that the exemption would only apply to food sold at grocery stores intended for human consumption off the premises where sold.
    
    Additional administrative costs to the Tax Department would be minimal during the current fiscal year due to notifying taxpayers of the exemption. Thereafter, there would be no additional administrative costs to the Department.

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 4,000 0 0
Personal Services 0 0 0
Current Expenses 4,000 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -152,000,000 -152,000,000
3. Explanation of above estimates (including long-range effect):
    The passage of this bill would result in a loss to the General Revenue Fund of about $152 million annually. Although the bill does not specifically define food, the estimate assumes that the exemption would only apply to food sold at grocery stores intended for human consumption off the premises where sold.
    
    Additional administrative costs to the Tax Department would be minimal during the current fiscal year due to notifying taxpayers of the exemption. Thereafter, there would be no additional administrative costs to the Department.


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