Date Requested: January 31, 2015
Time Requested: 11:32 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2656 Introduced HB2559
CBD Subject: Tax


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 raise the tax on cigarettes from 55 cents to $1.05.
    
    There will be a revenue increase of $6.6 million to the General Revenue Fund in FY2015 due to the May 2015 effective date and a revenue increase in FY2016 and beyond of $79.5 million per year.
    
    Additional administrative costs to the State Tax Department will be $60,000 in FY2015.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 60,000 0 0
Personal Services 60,000 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 6,600,000 79,500,000 79,500,000


Explanation of above estimates (including long-range effect):


    There will be a revenue increase of $6.6 million to the General Revenue Fund in FY2015 due to the May 2015 effective date. This is a $6.45 million increase from the excise tax and about a $150,000 increase in sales tax revenue. For the remaining years, there will be a total increase of $79.5 million per year to the General Revenue Fund, $77.4 million from the excise tax increase and $2.1 million in sales tax revenue.
    
    Additional administrative costs to the State Tax Department will be $60,000 in FY2015.



Memorandum


    



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