Date Requested: February 17, 2015
Time Requested: 12:31 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2884 Introduced HB2792
CBD Subject: Professions and Occupations


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 include photography activities for the gain or economic benefit of any person in the definition of “business” for the purposes of the business and occupation tax.
    
    This bill adds photographic activities to the definition of business for purposes of State Business and Occupation Tax. As written, there would be no impact on taxpayers or tax collections. The Business and Occupation Tax is a specific tax that applies to public utilities, electric power producers, gas storage businesses, and persons engaged in the production of synthetic fuel from coal. The bill only adds photographic activities in the definition section and does not include a unit or rate of tax.
    
    Assuming that this is not a new tax, there will be no additional costs to the Tax Department.



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 bill adds photographic activities to the definition of business for purposes of State Business and Occupation Tax. As written, there would be no impact on taxpayers or tax collections. The Business and Occupation Tax is a specific tax that applies to public utilities, electric power producers, gas storage businesses, and persons engaged in the production of synthetic fuel from coal. The bill only adds photographic activities in the definition section and does not include a unit or rate of tax.
    
    Assuming that this is not a new tax, there will be no additional costs to the Tax Department.



Memorandum


    The stated purpose of the bill is to include photography activities for the gain or economic benefit of any person in the definition of “business” for the purposes of the business and occupation tax.
    
    It is unclear what the intended result of this new language is or the reason why the new language was proposed. It does not appear to broaden the tax attributable to this section nor does it appear that operating a utility business or gas storage business or business of producing electricity or synthetic fuel from coal is contingent upon whether or not photographic activities are specifically listed in the definition of business.
    



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