FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 09:42 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1231 |
Introduced |
HB4402 |
|
|---|
| 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.
The stated purpose of this bill is to create a tax exemption for funeral, cremation, and burial services.
According to our interpretation, this bill would provide a Sales and Use Tax exemption for funeral, cremation, and burial services. The average cost of a burial in West Virginia is $7,032 while the average cost of cremation in the State is $2,257. Nationally, nearly 75 percent of funeral costs are dedicated to metal caskets (22%), funeral service fees (20%), vaults (14%), cremation caskets (12%), and embalming (7%). The State cremation rate is close to 40 percent. According to the Center for Disease Control and Prevention (CDC), in calendar year 2022 there were 27,827 reported deaths in West Virginia. Passage of this bill would reduce General Revenue Fund collections by nearly $3.4 million in FY2025 and $8.1 million per year in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $1,000 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 |
1,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-3,400,000 |
-8,100,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would provide a Sales and Use Tax exemption for funeral, cremation, and burial services. The average cost of a burial in West Virginia is $7,032 while the average cost of cremation in the State is $2,257. Nationally, nearly 75 percent of funeral costs are dedicated to metal caskets (22%), funeral service fees (20%), vaults (14%), cremation caskets (12%), and embalming (7%). The State cremation rate is close to 40 percent. According to the Center for Disease Control and Prevention (CDC), in calendar year 2022 there were 27,827 reported deaths in West Virginia. Passage of this bill would reduce General Revenue Fund collections by nearly $3.4 million in FY2025 and $8.1 million per year in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $1,000 in FY2024.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov