FISCAL NOTE
FUND(S):
General Revenue Fund, West Virginia Volunteer Firefighter Length of Service Fund
Sources of Revenue:
General Fund,Other Fund see above
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to legalize and regulate the selling of fireworks; to impose a special ten per cent fee on the sale of fireworks; and to use those proceeds for pensions for qualified volunteer firefighters.
As written, the proposed bill would establish the “Fireworks Registration Fee” to be paid by all West Virginia licensed businesses that intend to sell authorized fireworks. Additionally, guidelines are set forth for sale, possession and use of fireworks. The proposed bill also imposes an additional fee, on top of the Consumers Sales Tax, of ten percent on the sale of authorized consumer fireworks. Proceeds of this fee are to be deposited in a special revenue account designated as the “West Virginia Volunteer Firefighter Length of Service Fund.” According to our interpretation, passage of this bill would result in a gain of approximately $20,000 per year to the General Revenue Fund from the “Fireworks Registration Fee.” The State Tax Department cannot determine the amount of revenue the “West Virginia Volunteer Firefighter Length of Service Fund” would receive as a result of this bill.
Additional administrative costs to the State Tax Department associated with this bill 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 |
0 |
8,000 |
8,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
8,000 |
8,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
20,000 |
20,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to legalize and regulate the selling of fireworks; to impose a special ten per cent fee on the sale of fireworks; and to use those proceeds for pensions for qualified volunteer firefighters.
As written, the proposed bill would establish the “Fireworks Registration Fee” to be paid by all West Virginia licensed businesses that intend to sell authorized fireworks. Additionally, guidelines are set forth for sale, possession and use of fireworks. The proposed bill also imposes an additional fee, on top of the Consumers Sales Tax, of ten percent on the sale of authorized consumer fireworks. Proceeds of this fee are to be deposited in a special revenue account designated as the “West Virginia Volunteer Firefighter Length of Service Fund.” According to our interpretation, passage of this bill would result in a gain of approximately $20,000 per year to the General Revenue Fund from the “Fireworks Registration Fee.” The State Tax Department cannot determine the amount of revenue the “West Virginia Volunteer Firefighter Length of Service Fund” would receive as a result of this bill.
Additional administrative costs to the State Tax Department associated with this bill would be $8,000 per year for printing, postage and supplies.
Memorandum
The stated purpose of this bill is to legalize and regulate the selling of fireworks; to impose a special ten per cent fee on the sale of fireworks; and to use those proceeds for pensions for qualified volunteer firefighters.
The bill would require the State Tax Commissioner to create and administer a fireworks registration fee to be charged to all West Virginia licensed businesses that intend to sell fireworks. The bill does not provide for the licensing of out-of-state businesses or transient vendors.
Proposed section §29-3-24 would also impose a ten percent fee to be added to the retail sales price of fireworks. It also provides that “the proceeds of the fee collected ... shall be deposited by the Tax Commissioner ... into the “West Virginia Volunteer Firefighter Length of Service Fund.”
The proposed bill does not authorize the State Tax Commissioner to collect or administer the ten percent fee nor does it provide for the promulgation of legislative rules to provide for the collection or administration of the fee by the State Tax Department.
Additionally, the proposed bill does not provide for the enforcement of the registration requirement by the State Tax Department nor does it prescribe penalties for noncompliance.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us