FISCAL NOTE
Date Requested: February 06, 2024
Time Requested: 09:35 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3441 |
Introduced |
SB617 |
|
|---|
| 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 exempt the processing of beef, pork or lamb by a slaughterhouse for an individual owner of the product processed from the Consumer Sales and Service Tax.
According to our interpretation, this bill would exempt the processing of beef, pork and lamb by commercial and licensed slaughterhouses from the Consumers Sales Tax. Passage of this bill would result in a loss to the General Revenue Fund collections of roughly $210,000 in FY2025 and $500,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2025.
Administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2025.
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 |
1,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-210,000 |
-500,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would exempt the processing of beef, pork and lamb by commercial and licensed slaughterhouses from the Consumers Sales Tax. Passage of this bill would result in a loss to the General Revenue Fund collections of roughly $210,000 in FY2025 and $500,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2025.
Administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2025.
Memorandum
The stated purpose of this bill is to exempt the processing of beef, pork or lamb by a slaughterhouse for an individual owner of the product processed from the Consumer Sales and Service Tax.
The term “individual owner” is not defined. The language of the bill is broad enough to permit transactions that may not be anticipated or intended to be exempt from the tax.
As written, the bill may possibly permit an owner or raiser or beef, pork, or lamb to have their meat processed and then sell the processed meat. Commercial or business enterprises are not expressly prohibited from utilizing this exemption from the Consumer Sales and Service Tax.
The bill provides no internal effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov