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 reduce the Consumers Sales and Service Tax on food and food ingredients to 2%, beginning on January 1, 2012.
As stated, the passage of this bill would reduce the Consumers Sales Tax on food for home consumption from 3 percent to 2 percent, beginning on January 1, 2012. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2013 represents the first full year effect of the rate reduction of the Consumers Sales Tax on food sold for home consumption.
Sales of Food
Meant for Home
Consumption Only
FY2012 -$11.0 million
FY2013 -$26.0 million
The aforementioned estimate for FY2012 was included in the Governor’s official revenue estimates for FY2012.
Additional administrative costs to the State Tax Department would be $74,000 in FY2012 due to notifying taxpayers of the rate change and for programming changes.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2011 Increase/Decrease (use"-") |
2012 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
74,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
48,000 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
26,000 |
0 |
2. Estimated Total Revenues |
0 |
-11,000,000 |
-26,000,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to reduce the Consumers Sales and Service Tax on food and food ingredients to 2%, beginning on January 1, 2012.
As stated, the passage of this bill would reduce the Consumers Sales Tax on food for home consumption from 3 percent to 2 percent, beginning on January 1, 2012. The following table provides estimates of revenue loss to the General Revenue Fund. Fiscal Year 2013 represents the first full year effect of the rate reduction of the Consumers Sales Tax on food sold for home consumption.
Sales of Food
Meant for Home
Consumption Only
FY2012 -$11.0 million
FY2013 -$26.0 million
The aforementioned estimate for FY2012 was included in the Governor’s official revenue estimates for FY2012.
Additional administrative costs to the State Tax Department would be $74,000 in FY2012 due to notifying taxpayers of the rate change and for programming changes.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov