FISCAL NOTE
Date Requested: January 10, 2024
Time Requested: 09:44 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1357 |
Introduced |
HB4482 |
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|---|
| CBD Subject: |
|
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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 expand the Good Samaritan Food Donation Act to include tax incentives for retail food distributors who make wholesome and fit grocery products available for nonprofit organizations who will distribute the food to individuals and families in need.
According to our interpretation of this bill, retail food distributors that donate certain surplus food products to nonprofit organizations would be eligible for a tax credit offsetting Corporation Net Income Tax and Personal Income Tax liabilities. The proposed Good Samaritan Food Donation Tax credit is similar to the current State Farm to Food Bank tax credit, but it benefits retail food distributors. The maximum credit amount was $5,000 for each eligible taxpayer. The amount of the credit is 10 percent of the original retail sale value of the apparently fit grocery product or apparently wholesome food item. Passage of this bill would result in a loss to the General Revenue Fund of up to $200,000 in FY2025 and in subsequent fiscal years if all eligible taxpayers choose to participate.
Additional administrative costs incurred by the State Tax Department would be $20,000 in FY2024 and $10,000 in FY2025 and thereafter.
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 |
20,000 |
10,000 |
10,000 |
| Personal Services |
5,000 |
10,000 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
15,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-200,000 |
-200,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, retail food distributors that donate certain surplus food products to nonprofit organizations would be eligible for a tax credit offsetting Corporation Net Income Tax and Personal Income Tax liabilities. The proposed Good Samaritan Food Donation Tax credit is similar to the current State Farm to Food Bank tax credit, but it benefits retail food distributors. The maximum credit amount was $5,000 for each eligible taxpayer. The amount of the credit is 10 percent of the original retail sale value of the apparently fit grocery product or apparently wholesome food item. Passage of this bill would result in a loss to the General Revenue Fund of up to $200,000 in FY2025 and in subsequent fiscal years if all eligible taxpayers choose to participate.
Additional administrative costs incurred by the State Tax Department would be $20,000 in FY2024 and $10,000 in FY2025 and thereafter.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov