FISCAL NOTE



FUND(S):

Returnable Container Deposit Fund, General Revenue Fund

Sources of Revenue:

General Fund,Special Fund

Legislation creates:

A New Program,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 establish a program to recycle beverage containers and reduce litter. The bill requires the use of returnable containers for many beverages and requires the use of a ten cent deposit; exempts deposits on containers from sales taxes and excludes deposits from business and occupation taxes; prescribes the powers and duties of DEP; and prescribes penalties and remedies. As written, most of the responsibilities of the bill are placed upon the State Department of Environmental Protection. However, the bill provides that the deposits are exempt from the Consumers Sales and Service Tax (Section 22-15A-31(k)). This provision would reverse current Sales Tax regulations, which state that “deposits charged by vendors for reusable containers are subject to tax..” (110 CSR 32.3.1). There may be minimal revenue loss to the General Revenue Fund from the passage of this bill. Additional administrative costs to the State Tax Department would be minimal.



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 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 0 0


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


The stated purpose of this bill is to establish a program to recycle beverage containers and reduce litter. The bill requires the use of returnable containers for many beverages and requires the use of a ten cent deposit; exempts deposits on containers from sales taxes and excludes deposits from business and occupation taxes; prescribes the powers and duties of DEP; and prescribes penalties and remedies. As written, most of the responsibilities of the bill are placed upon the State Department of Environmental Protection. However, the bill provides that the deposits are exempt from the Consumers Sales and Service Tax (Section 22-15A-31(k)). This provision would reverse current Sales Tax regulations, which state that “deposits charged by vendors for reusable containers are subject to tax..” (110 CSR 32.3.1). There may be minimal revenue loss to the General Revenue Fund from the passage of this bill. 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