|Date Requested:February 10, 2005
Time Requested:04:20 PM
| FUND(S) |
General Revenue Fund
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to exempt from the consumers sales and service tax certain charges by mortgage brokers, lenders and loan originators licensed by the West Virginia Division of Banking under article 17, chapter 31 of the code of West Virginia.
As written, the passage of this bill would have no impact because the current W. Va. Code already exempts most, if not, all of the referenced fees.
Additional administrative costs to the Tax Department would be minimal. Any additional administrative costs would be attributable to notifying taxpayers of the new exemption.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||4,000||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
As written, the passage of this bill would have no impact because the current W. Va. Code already exempts most if not all of the referenced charges.
Additional administrative costs to the Tax Department would be $4,000 during the current fiscal year due to notifying taxpayers of the new exemption.
|Finance charges, as defined in § 31-17-1 of the W. Va. Code, are already exempt from sales tax under present law, whether or not the charge is imposed by a bank. Most, if not all, of the charges which constitute additional charges, as defined in § 31-17-1 of the W. Va. Code, are currently exempt from the sales tax. Section § 31-17-2 of the W. Va. Code specifically exempts from the sales tax “brokerage fees, additional charges and finance charges imposed by licensed mortgage brokers, lenders and loan originators.”|