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 eliminate the sales tax on food beginning the first day of July, two thousand eight.
As stated, the passage of this bill would eliminate the Consumers Sales Tax on food for home consumption beginning on July 1, 2008. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2010 represents the first full year effect of the elimination of the Consumers Sales Tax on food sold for home consumption.
Sales of Food
Meant for Home
Consumption Only
FY2009 -$75.0 million
FY2010 -$80.8 million
Additional administrative costs to the State Tax Department would be minimal.
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 |
4,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
4,000 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-75,000,000 |
-80,800,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to eliminate the sales tax on food beginning the first day of July, two thousand eight.
As stated, the passage of this bill would eliminate the Consumers Sales Tax on food for home consumption beginning on July 1, 2008. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2010 represents the first full year effect of the elimination of the Consumers Sales Tax on food sold for home consumption.
Sales of Food
Meant for Home
Consumption Only
FY2009 -$75.0 million
FY2010 -$80.8 million
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us