FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 10:40 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1513 |
Introduced |
HB4521 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt sales of tangible personal property to safely store firearms, including, but not limited to, safes and trigger locks from the consumer sales tax.
According to our interpretation, the proposed bill would create an exemption from consumer sales and use tax for all sales of tangible personal property used to safely store firearms. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2024. Based on the assumption that the exemption covers safes and trigger locks only, the passage of the proposed legislation would create a loss in General Revenue collections of $61,000 in FY2025 and a loss of $67,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department are expected to be $5,000 in FY2024.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
5,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
5,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-61,000 |
-67,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create an exemption from consumer sales and use tax for all sales of tangible personal property used to safely store firearms. The exemption would apply to sales made on or after the effective date of the amendment which is July 1, 2024. Based on the assumption that the exemption covers safes and trigger locks only, the passage of the proposed legislation would create a loss in General Revenue collections of $61,000 in FY2025 and a loss of $67,000 in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department are expected to be $5,000 in FY2024.
Memorandum
The stated purpose of this bill is to exempt sales of tangible personal property to safely store firearms, including, but not limited to, safes and trigger locks from the consumer sales tax.
The bill would exempt "Sales of tangible personal property to safely store firearms, including, but not limited to, safes and trigger locks" from the consumer’s sales tax. The language of the bill is broad, and the terms are not adequately defined. Because of the "not limited" clause, any item of tangible personal property capable of containing a firearm would arguably be exempt.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov