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