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 produce revenue by imposition of a tax upon the sale or rental of obscene materials. As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically. Additional administrative costs to the State Tax Department would be $5,000 during the current fiscal year due to notifying taxpayers of the new tax. Next fiscal year (i.e., FY2010), the costs would rise to about $38,300 due to the hiring of a new employee to administer this new tax, obtaining additional computers and office equipment, and printing of new tax returns, postage and supplies. Thereafter, additional administrative costs would be about $25,700 per year.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 5,000 38,366 25,760
Personal Services 0 20,760 20,760
Current Expenses 5,000 5,000 5,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 12,606 0
2. Estimated Total Revenues 0 0 0


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


The stated purpose of this bill is to produce revenue by imposition of a tax upon the sale or rental of obscene materials. As written, we are unable to estimate the revenue gain to the General Revenue Fund from the passage of this bill. It is very broad and subjective in nature as to the type of materials that would be subject to such a tax. Also, there may be some compliance issues due to the availability of obtaining such materials electronically. Additional administrative costs to the State Tax Department would be $5,000 during the current fiscal year due to notifying taxpayers of the new tax. Next fiscal year (i.e., FY2010), the costs would rise to about $38,300 due to the hiring of a new employee to administer this new tax, obtaining additional computers and office equipment, and printing of new tax returns, postage and supplies. Thereafter, additional administrative costs would be about $25,700 per year.



Memorandum






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