Date Requested: February 24, 2015
Time Requested: 01:20 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
1377 Introduced HB3004
CBD Subject: Health


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

A New Program,A New Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


     This bill would create the West Virginia Addictions Treatment Recovery Fund. The bill sets forth how moneys are to be collected and expended and how the moneys should spent as related to the purposes of the fund for prevention, intervention, treatment and recovery from addictions related to drug and alcohol use or both.
    
     The West Virginia Addictions Treatment Recovery Fund will utilize proceeds from a $.05 per ounce fee on all alcoholic liquors offered for sale by the WVABCA. The bill does not state who is paying for the fee. The assumption is being made that the WVABCA would pass on the fee to retail liquor outlets and in turn the retail liquor outlets would pass on the fee to West Virginia consumers.
    
     This fee or tax on WV consumers would be deposited solely to the benefit of West Virginia Addictions Treatment Recovery Fund.
    
     The conversion rate of milliliter to ounces is 29.5735296875.
     50 ml is 1.6907011279450001 ounces,
     so the tax would = $ 0.09/bottle.
    
     100 ml is 3.3814022558900003 ounces,
     so the tax would = $ 0.17/bottle.
    
     180 ml is 6.086524060602001 ounces,
     so the tax would = $ 0.30/bottle.
    
     200 ml is 6.762804511780001 ounces,
     so the tax would = $ 0.34/bottle.
    
     250 ml is 8.453505639725 ounces,
     so the tax would = $ 0.42/bottle.
    
     290 ml is 9.806066542081 ounces,
     so the tax would = $ 0.49/bottle.
    
     300 ml is 10.144206767670001 ounces,
     so the tax would = $ 0.51/bottle.
    
     355 ml is 12.0039780084095 ounces,
     so the tax would = $ 0.60/bottle.
    
     375 ml is 12.6802584595875 ounces,
     so the tax would = $ 0.63/bottle.
    
     500 ml is 16.90701127945 ounces,
     so the tax would = $ 0.85/bottle.
    
     720 ml is 24.346096242408002 ounces,
     so the tax would = $ 1.22/bottle.
    
     750 ml bottle is 25.360516919175 ounces,
     so the tax would = $ 1.27/bottle.
    
     1 liter is 33.8140225589 ounces,
     so the tax would = $ 1.69/bottle.
    
     1.5 liter is 50.72103383835 ounces,
     so the tax would = $ 2.54/bottle.
    
     1.75 liter is 59.174539478075005 ounces,
     so the tax would = $ 2.96/bottle.
    
     1.80 liter ¬ is 60.86524060602 ounces,
     so the tax would = $ 3.04/bottle.
    
     3 liter is 101.4420676767 ounces,
     so the tax would = $ 5.07/bottle.
    



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 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):


    This fee or tax on WV consumers would be deposited solely to the benefit of West Virginia Addictions Treatment Recovery Fund.
    
     The conversion rate of milliliter to ounces is 29.5735296875.
     50 ml is 1.6907011279450001 ounces,
     so the tax would = $ 0.09/bottle.
     100 ml is 3.3814022558900003 ounces,
     so the tax would = $ 0.17/bottle.
     180 ml is 6.086524060602001 ounces,
     so the tax would = $ 0.30/bottle.
     200 ml is 6.762804511780001 ounces,
     so the tax would = $ 0.34/bottle.
     250 ml is 8.453505639725 ounces,
     so the tax would = $ 0.42/bottle.
     290 ml is 9.806066542081 ounces,
     so the tax would = $ 0.49/bottle.
     300 ml is 10.144206767670001 ounces,
     so the tax would = $ 0.51/bottle.
     355 ml is 12.0039780084095 ounces,
     so the tax would = $ 0.60/bottle.
     375 ml is 12.6802584595875 ounces,
     so the tax would = $ 0.63/bottle.
     500 ml is 16.90701127945 ounces,
     so the tax would = $ 0.85/bottle.
     720 ml is 24.346096242408002 ounces,
     so the tax would = $ 1.22/bottle.
     750 ml bottle is 25.360516919175 ounces,
     so the tax would = $ 1.27/bottle.
     1 liter is 33.8140225589 ounces,
     so the tax would = $ 1.69/bottle.
     1.5 liter is 50.72103383835 ounces,
     so the tax would = $ 2.54/bottle.
     1.75 liter is 59.174539478075005 ounces,
     so the tax would = $ 2.96/bottle.
     1.80 liter ¬ is 60.86524060602 ounces,
     so the tax would = $ 3.04/bottle.
     3 liter is 101.4420676767 ounces,
     so the tax would = $ 5.07/bottle.
    
     The total ounces sold by the WVABCA (as provided by the WVABCA IT Department) in calendar year 2014 was 228,970,290 oz.
    
     So based on the numbers the fee/tax theoretically could have generated $ 11,448,514.50.
    
     However the fee/tax could have a negative impact on sales as it will be passed on to consumers. This negative impact could result in a rough estimate of 5% - 10% reduction in sales volume. Thus, in 2014 instead of a typical 3% increase in revenue transfers the WVABCA has seen historically, the WVABCA revenue transfer could be reduced by 5% to 10% as well as the amount deposited to the West Virginia Addictions Treatment Recovery Fund.
    
     If the bill is implemented in July 2015, 1/2 of the $11,448,514.50 or $5,724,257.25 with a "rough estimate" of a 10% drop in sales volume for 2014 = (228,970,290 oz * .10) - 228,970,290 oz
     = 206,073,261 * .05 cents
     = $10,303,663.05



Memorandum


    This bill addresses the sale of alcoholic liquors, which includes liquor and wine. The WVABCA is not involved in the wine business which is conducted by distributors to retailers.



    Person submitting Fiscal Note: Anoop Bhasin, General Counsel on behalf of WVABCA
    Email Address: Anoop.K.Bhasin@wv.gov