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 list certain professional and personal services that are exempt from payment of the state consumers sales tax. According to our interpretation, passage of this bill would add registered lobbyists, licensed occupational therapists and licensed surveyors to the exemption for professional and personal services from the Consumers Sales and Service Tax. As a result, there would be a decrease of less than $100,000 to the General Revenue Fund due to the inclusion of registered lobbyists and licensed surveyors to the exemption. However, the State Tax Department is unable to estimate the revenue impact of adding licensed occupational therapists to the exemption. Additional administrative costs to the State Tax Department attributable to notifying taxpayers of the change 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 -100,000 -100,000


Explanation of above estimates (including long-range effect):


The stated purpose of this bill is to list certain professional and personal services that are exempt from payment of the state consumers sales tax. According to our interpretation, passage of this bill would add registered lobbyists, licensed occupational therapists and licensed surveyors to the exemption for professional and personal services from the Consumers Sales and Service Tax. As a result, there would be a decrease of less than $100,000 to the General Revenue Fund due to the inclusion of registered lobbyists and licensed surveyors to the exemption. However, the State Tax Department is unable to estimate the revenue impact of adding licensed occupational therapists to the exemption. Additional administrative costs to the State Tax Department would be approximately $4,000 for printing and promotion associated with notifying taxpayers of the change.



Memorandum


The stated purpose of this bill is to list certain professional and personal services that are exempt from payment of the state consumers sales tax. The proposed bill adds registered lobbyists and licensed occupational therapists to the exempt professional services cited in approved Consumers Sales and Service Tax regulations. The bill also omits osteopathic physicians and surgeons and psychoanalysts from the list of exempt professional services. It is unclear whether the intent of the proposed legislation is to subject these services to tax.



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