FISCAL NOTE
Date Requested: February 05, 2026
Time Requested: 04:24 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1755 |
Introduced |
HB5235 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 modify the back-to-school sales tax holiday amount.
According to our interpretation, this bill would increase the back-to-school sales tax holiday amount for the following items effective July 1, 2026: clothing from $125 to $150, schools supplies from $50 to $60, school instruction materials from $20 to $25, laptop and tablet computers from $500 to $600, and sports equipment from $150 to $180. These proposed modifications amount to roughly a 20% increase from the original price items. The current cost of the State back to school holiday Sales and Use Tax exemption is $3.4 million per year. Passage of this bill would reduce General Revenue Fund collections by up to an additional $0.7 million per year in FY2027 and thereafter.
Additional administrative costs incurred by the State Tax Division would be $1,100 in FY2026.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-700,000 |
-700,000 |
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.
According to our interpretation, this bill would increase the back-to-school sales tax holiday amount for the following items effective July 1, 2026: clothing from $125 to $150, schools supplies from $50 to $60, school instruction materials from $20 to $25, laptop and tablet computers from $500 to $600, and sports equipment from $150 to $180. These proposed modifications amount to roughly a 20% increase from the original price items. The current cost of the State back to school holiday Sales and Use Tax exemption is $3.4 million per year. Passage of this bill would reduce General Revenue Fund collections by up to an additional $0.7 million per year in FY2027 and thereafter.
Additional administrative costs incurred by the State Tax Division would be $1,100 in FY2026.
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.
Person submitting Fiscal Note: Peter Shirley
Email Address: radfiscal@wv.gov