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 exempt funeral establishments and authorized representatives of the deceased from any sales tax regarding goods and services funeral establishments otherwise provide in the course of its business.
As written, this bill would exempt from the Consumers Sales Tax all purchases by funeral establishments of any goods or services as part of its “regular course of business”. Also, this bill would exempt all goods or services provided by funeral establishments. As a result, the passage of this bill would result in a loss to the General Revenue Fund of at least $5 million per year. Although the bill provides a definition of a “funeral establishment”, there are no limitations to purchases made within the “regular course of business”.
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 |
-5,000,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to exempt funeral establishments and authorized representatives of the deceased from any sales tax regarding goods and services funeral establishments otherwise provide in the course of its business.
As written, this bill would exempt from the Consumers Sales Tax all purchases by funeral establishments of any goods or services as part of its “regular course of business”. Also, this bill would exempt all goods or services provided by funeral establishments. As a result, the passage of this bill would result in a loss to the General Revenue Fund of at least $5 million per year. Although the bill provides a definition of a “funeral establishment”, there are no limitations to purchases made within the “regular course of business”.
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