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 provide that any person who maintains a “roll your own” cigarette machine at a retail establishment is deemed a manufacturer of cigarettes and that the resulting product is deemed to be “cigarettes sold to a consumer” which would require payment of excise tax on the cigarettes. According to our interpretation, the passage of this bill may result in additional State General Revenue Fund collections of between $500,000 and $750,000 per year. This bill deems retail establishments that offer “roll your own” cigarette machines to be a manufacturer of cigarettes and therefore are subject to the excise tax on those cigarettes. There would be no additional administrative costs to the State Tax Department from the passage of this bill.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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 provide that any person who maintains a “roll your own” cigarette machine at a retail establishment is deemed a manufacturer of cigarettes and that the resulting product is deemed to be “cigarettes sold to a consumer” which would require payment of excise tax on the cigarettes. According to our interpretation, the passage of this bill may result in additional State General Revenue Fund collections of between $500,000 and $750,000 per year. This bill deems retail establishments that offer “roll your own” cigarette machines to be a manufacturer of cigarettes and therefore are subject to the excise tax on those cigarettes. There would be no additional administrative costs to the State Tax Department from the passage of this bill.



Memorandum


The stated purpose of this bill is to provide that any person who maintains a “roll your own” cigarette machine at a retail establishment is deemed a manufacturer of cigarettes and that the resulting product is deemed to be “cigarettes sold to a consumer” which would require payment of excise tax on the cigarettes. There appears to be a defect in the bill title. The reference to the chapter that includes the article being amended refers to “sold to a consumer for purposes of this article nine-d,” instead of “sold to a consumer for purposes of article nine-d, chapter sixteen”.



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