Date Requested: February 25, 2015
Time Requested: 02:06 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2626 Introduced HB2937
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General Revenue Fund, Fight Substance Abuse Fund

Sources of Revenue:

General Fund,Special 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 designate $5 million per year for 4 years from beer, wine, and liquor tax revenue to the Fight Substance Abuse Fund.
    
    The bill does not represent a change in revenue, just a reallocation of revenue. Five million dollars will be transferred from the General Revenue Fund to the Fight Substance Abuse Fund. The bill does not provide an allocation from specific excise taxes. The net loss to the State General Revenue Fund is $5 million for four years beginning in FY2016.
    
    Administrative costs to the Tax Department will be $27,000 in FY2016.



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 27,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 27,000 0
2. Estimated Total Revenues 0 0 0


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


    The bill does not represent a change in revenue, just a reallocation of revenue. Five million dollars will be transferred from the General Revenue Fund to the Fight Substance Abuse Fund. The bill does not provide an allocation from specific excise taxes. The net loss to the State General Revenue Fund is $5 million for four years beginning in FY2016.
    
    Administrative costs to the Tax Department will be $27,000 in FY2016.



Memorandum


    The stated purpose of this bill is to designate $5 million per year for 4 years from beer, wine, and liquor tax revenue to the Fight Substance Abuse Fund.
    
    The bill requires the Legislature to “make available” a yearly total of $5 million for four fiscal years beginning July 1, 2015, to be deposited in the “Fight Substance Abuse Fund” from the beer barrel tax, the wine liter tax, and the sale of liquor to retail liquor licensees.
    
    The bill names the Fund and creates it pursuant to W.Va. Code Section 60A-9-6. The citation is incorrect. The cited section allows the promulgation of rules by the State Board of Pharmacy. The Fund must be established in the Treasurer’s Office.
    
    The price of liquor is set to yield a net profit for the General Revenue Fund of not less than $6.5 million annually. The ABCC Commissioner may have to take a portion of the $5 million into account when setting prices. The proposal does not take into account the established statutory scheme.
    



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