FISCAL NOTE
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local property tax
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to allow farm equipment dealers to calculate their inventory based on their average yearly sales.
The loss of revenue to the State and local governments cannot be determined.
Additional administrative costs to the State Tax Department or local governments cannot be determined.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The State Tax Department does not have sufficient data to estimate the revenue loss to the State and local governments due to passage of this bill.
Additional administrative costs to the State Tax Department or local governments cannot be determined.
Memorandum
The stated purpose of this bill is to allow farm equipment dealers to calculate their inventory based on their average yearly sales.
The bill would add farm equipment dealers’ inventory to the list of items subject to the Special Method for Appraising Dealer Vehicle Inventory. The “special method” allows appraisals of inventories to be based on gross annual sales, divided by 12. The basic list of entities who may use the special method is set forth in the first paragraph of W. Va. Code §11-6C-1. However, that paragraph of the proposed bill does not contain a provision bringing “farm equipment dealers inventory” within the scope of article 6C. The proposed bill does insert the phrase in the second paragraph of that section and elsewhere throughout article 6C where it would be expected.
In addition, the bill does not define “farm equipment dealers inventory” or otherwise limit its application.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us