FISCAL NOTE
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 from the consumers sales and service tax drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service.
We are unable to fully quantify the revenue impact from the exemption for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service. However, according to our interpretation, the loss to the General Revenue Fund could be significant.
The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
4,000 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
4,000 |
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 provides an exemption from the consumers sales and service tax for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service.
We are unable to fully quantify the revenue impact from the exemption for drugs that are sold to licensed physicians which are to be consumed in the performance of a professional service. However, according to our interpretation, the loss to the General Revenue Fund could be significant.
The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us