Date Requested: February 20, 2015
Time Requested: 10:48 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
3130 Introduced SB525
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 exempt services of individuals authorized to practice before the Internal Revenue Service as an enrolled agent, enrolled retirement plan agent, or registered tax return preparer from consumers sales tax and use tax.
    
    The bill does not state what services are exempt. If all sales at establishments of accounting, tax preparation, bookkeeping, and payroll services are exempt, the bill could reduce General Revenue by around $3 million per year.
    
    Administrative costs to the Tax Department will be $20,000 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 20,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 20,000 0
2. Estimated Total Revenues 0 -3,000,000 -3,000,000


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


    The bill does not state what services are exempt. If all sales at establishments of accounting, tax preparation, bookkeeping, and payroll services are exempt, the bill could reduce General Revenue by around $3 million per year.
    
    Administrative costs to the Tax Department will be $20,000 in FY2016.



Memorandum


    The stated purpose of this bill is to exempt services of individuals authorized to practice before the Internal Revenue Service as an enrolled agent, enrolled retirement plan agent, or registered tax return preparer from consumers sales tax and use tax.
    
    Though the services of individuals holding the required certifications are clearly exempt, the bill gives no indication whether accounting or bookkeeping services are also exempt. Also, though the individuals may be exempt, there is no indication of whether services of the entire establishment in which these individuals operate are also exempt, due to the presence of an individual with the certification.
    
    



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