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 add certified professional estimator services to the list of services exempt from consumers sales tax. Although the stated purpose of the bill indicates the bill is to “add certified professional estimator services to the list of services exempt from consumers sales tax,” the language in the bill states that the exemption is for “Fees for services for providing cost estimates for residential, commercial or industrial construction activities.” The difference in the language in the bill compared to the stated purpose may result in a broader application of the exemption than intended. The State Tax Department does not have sufficient information on the Consumers Sales and Service Tax currently paid on certified professional estimator services or on the Consumers Sales and Service Tax currently paid on services for providing cost estimates for residential, commercial, or industrial construction activities. Thus, we are unable to provide an accurate estimate of the potential reduction in the General Revenue Fund that would result from passage of this bill. Additional State Tax Department administrative costs associated with passage of this bill would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
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):


Although the stated purpose of the bill indicates the bill is to “add certified professional estimator services to the list of services exempt from consumers sales tax,” the language in the bill states that the exemption is for “Fees for services for providing cost estimates for residential, commercial or industrial construction activities.” The difference in the language in the bill compared to the stated purpose may result in a broader application of the exemption than intended. The State Tax Department does not have sufficient information on the Consumers Sales and Service Tax currently paid on certified professional estimator services or on the Consumers Sales and Service Tax currently paid on services for providing cost estimates for residential, commercial, or industrial construction activities. Thus, we are unable to provide an accurate estimate of the potential reduction in the General Revenue Fund that would result from passage of this bill. Additional State Tax Department administrative costs associated with passage of this bill would be minimal.



Memorandum


The stated purpose of this bill is to add certified professional estimator services to the list of services exempt from consumers sales tax. As written, this bill would exempt from the Consumers Sales and Service Tax “Fees for services for providing cost estimates for residential, commercial or industrial construction activities.” However, the stated purpose is “to add certified professional estimator services to the list of services exempt from consumers sales tax.” The difference in the language in the bill compared to the stated purpose may result in a broader application of the exemption than intended.



    Person submitting Fiscal Note: Mark B. Muchow
    Email Address: Roger.D.Cox@wv.gov