FISCAL NOTE
Date Requested: January 10, 2024
Time Requested: 08:25 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1387 |
Introduced |
HB4244 |
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|---|
| CBD Subject: |
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FUND(S):
Ryan Brown Addiction Prevention and Recovery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New 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 impose and collect a tax on opioid drugs or substances in order to fund substance addiction prevention and treatment.
This bill would impose an excise tax of ten cents on each pill purchased by or for any licensed pharmacy in West Virginia for all opioid substances and their derivatives and substances included as Schedule II drugs under W. Va. Code §60A-2-206. The tax is imposed on the pharmaceutical manufacturer or distributor, and the pharmacies are to collect and remit the tax to the Tax Commissioner. The revenue collected from this bill would be deposited to the Ryan Brown Addiction Prevention and Recovery Fund. Absent an effective date in this bill, this imposed tax would go into effect 90 days from its passage. The total revenue increase from the ten-cent tax per dosage would be approximately $5.4 million in the first full year of enactment.
Additional administrative costs to the State Tax Department would be $61,500 in FY 2025 and $40,000 in subsequent fiscal years.
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 |
0 |
61,500 |
40,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,500 |
0 |
| Other |
0 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
5,400,000 |
Explanation of above estimates (including long-range effect):
This bill would impose an excise tax of ten cents on each pill purchased by or for any licensed pharmacy in West Virginia for all opioid substances and their derivatives and substances included as Schedule II drugs under W. Va. Code §60A-2-206. The tax is imposed on the pharmaceutical manufacturer or distributor, and the pharmacies are to collect and remit the tax to the Tax Commissioner. The revenue collected from this bill would be deposited to the Ryan Brown Addiction Prevention and Recovery Fund. Absent an effective date in this bill, this imposed tax would go into effect 90 days from its passage. The total revenue increase from the ten-cent tax per dosage would be approximately $5.4 million in the first full year of enactment.
Additional administrative costs to the State Tax Department would be $61,500 in FY 2025 and $40,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to impose and collect a tax on opioid drugs or substances in order to fund substance addiction prevention and treatment.
Effectiveness of this bill will be partially dependent upon the clarity as to what drugs are to be taxed. The context of the bill points to the taxation of a wide range of drugs; however, the bill uses the term “opioid” but does not define it. There is no cross-reference to the definition of “opioid” elsewhere in the code.
There is no effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov