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 veterans’ organization which are exempt from income taxation by virtue of Internal Revenue Code 501(c)(19), from consumers sales and service tax. The loss to the state General Revenue Fund cannot be determined. The State Tax Department would not incur any additional cost from the passage of this bill.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 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 exempt veterans’ organization which are exempt from income taxation by virtue of Internal Revenue Code 501(c)(19), from consumers sales and service tax. The loss to the state General Revenue Fund cannot be determined. There is no data on the number of 501(c)(19) veteran’s organizations in West Virginia. In addition, no information is available on the amount of purchases made by these types of organizations. The State Tax Department would not incur any additional cost from the passage of this bill.



Memorandum


The stated purpose of this bill is to exempt veterans’ organization which are exempt from income taxation by virtue of Internal Revenue Code 501(c)(19), from consumers sales and service tax. Sales by such an organization are not addressed in the bill. The bill’s title and note may cause some confusion on this distinction. There is no effective date provided, which could result in a retroactive effect.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov