FISCAL NOTE



FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to address Constitutional and other concerns left open after the passage of SB712 during the 2007 Regular Session. The bill sets application procedures for and restricts issuance of waivers of statutory raw product production quotas and import limitations for farm wineries; eliminates a restriction on donations to political party campaign funds by wholesalers’ representatives and their spouses; licenses “brokers” as a separate class of wholesaler representative; combines sampling and tasting functions in the wine specialty shop license and increases the annual license fee; exempts a winery producing 20,000 gallons of wine or less annually from the liter tax; compresses direct shipper licensing requirements into a single section; limits direct shipping to wineries and farm wineries - suppliers and retailers deleted; requires consumers to pay sales/use tax on direct shipments of wine from wineries that have no minimum physical presence in WV; adopts language regarding disposition of tax income to satisfy the Auditor; and changes provisions relating to brand registration. Although most of the amendments in this bill affect the Alcohol Beverage Control Commission, proposed WV Code §60-8-4 amends Wine Liter Tax requirements of the existing statute. The bill provides an exemption from the liter tax for wineries that produce 20,000 gallons, or less, of wine annually. Due to the relatively small number of gallons produced by most in-state wineries, there would be minimal revenue loss associated with the passage of this bill. There would be no additional administrative costs to the State Tax Department from the passage of this bill.



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):


Although most of the amendments in this bill affect the Alcohol Beverage Control Commission, proposed WV Code §60-8-4 amends Wine Liter Tax requirements of the existing statute. The bill provides an exemption from the liter tax for wineries that produce 20,000 gallons, or less, of wine annually. Due to the relatively small number of gallons produced by most in-state wineries, there would be minimal revenue loss associated with the passage of this bill. There would be no additional administrative costs to the State Tax Department from the passage of this bill.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us