FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 08:09 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2154 |
Introduced |
HB2140 |
|
|---|
| CBD Subject: |
Natural Resources |
|---|
|
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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt daylight fluorescent orange outerwear purchases from sales tax during the first two weeks in November.
Based on our interpretation of the bill, the provisions of this bill would provide a sales tax holiday for purchases of daylight fluorescent orange or blaze orange outerwear from Consumers Sales Tax during the first two weeks of November each year. This Consumers Sales Tax holiday could result in a decrease to the General Revenue Fund of up to $1.5 million in FY2026 and in subsequent fiscal years. This is an estimate based on registered hunters purchasing one new piece of daylight fluorescent orange or blaze orange outwear per year. Municipal sales tax would also have a revenue loss of roughly $0.13 million in FY2026 and in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $1,100 per year beginning in FY2025.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,100 |
1,100 |
1,100 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
1,100 |
1,100 |
| 2. Estimated Total Revenues |
0 |
-1,500,000 |
-1,500,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Based on our interpretation of the bill, the provisions of this bill would provide a sales tax holiday for purchases of daylight fluorescent orange or blaze orange outerwear from Consumers Sales Tax during the first two weeks of November each year. This Consumers Sales Tax holiday could result in a decrease to the General Revenue Fund of up to $1.5 million in FY2026 and in subsequent fiscal years. This is an estimate based on registered hunters purchasing one new piece of daylight fluorescent orange or blaze orange outwear per year. Municipal sales tax would also have a revenue loss of roughly $0.13 million in FY2026 and in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $1,100 per year beginning in FY2025.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to exempt daylight fluorescent orange outerwear purchases from sales tax.
The definitions within this bill may not align with product definitions provided in the Streamlined Sales and Use Tax Agreement.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov