Date Requested:February 09, 2005
Time Requested:02:58 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005r108 intro hb2009
CBD Subject: eliminate clothing tax
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 remove the consumer’s sales tax on sales of clothing. The tax commissioner is authorized to propose rules to further the intent of the article.
    
    According to our interpretation and based on available data, passage of this bill would result in a loss to the General Revenue Fund of $77.3 million.
    
    Additional administrative costs to the Tax Department associated with this bill would be minimal.

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 -77,300,000 -77,300,000
3. Explanation of above estimates (including long-range effect):
    According to our interpretation and based on available data, passage of this bill would result in a loss to the General Revenue Fund of $77.3 million.
    
    Additional administrative costs to the Tax Department associated with this bill would be minimal.


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