FISCAL NOTE
Date Requested: March 14, 2017
Time Requested: 01:23 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3192 |
Introduced |
HB3046 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 impose an additional excise tax on soft drinks. The bill dedicates the revenues from the additional tax to the General Revenue Fund.
The proposed bill would alter the current structure of the Soft Drinks Tax effective July 1, 2017 such that the tax imposed will be 2 cents per 16.9-ounce bottle of soft drinks, $1.60 per gallon of soft drink syrup, and 2 cents on each ounce of soft drink powder. Additional revenues resulting from the increased tax are dedicated to the General Revenue Fund. According to our interpretation, the proposed bill would effectively double the current Soft Drink Tax. These changes are expected to result in a net revenue gain of roughly $12.7 million in FY2018. This estimate accounts for 11 months of collections following the change in tax reduced by anticipated FY2018 revenue collections from the current tax. A net revenue gain of approximately $13.8 million is expected in FY2019.
Additional administrative costs incurred by the State Tax Department are expected to be $50,000 for the remainder of FY2017, $20,000 in FY2018, and $10,000 for each year thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
50,000 |
20,000 |
10,000 |
| Personal Services |
0 |
20,000 |
10,000 |
| Current Expenses |
5,000 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
45,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
12,700,000 |
13,800,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would alter the current structure of the Soft Drinks Tax effective July 1, 2017 such that the tax imposed will be 2 cents per 16.9-ounce bottle of soft drinks, $1.60 per gallon of soft drink syrup, and 2 cents on each ounce of soft drink powder. Additional revenues resulting from the increased tax are dedicated to the General Revenue Fund. According to our interpretation, the proposed bill would effectively double the current Soft Drink Tax. These changes are expected to result in a net revenue gain of roughly $12.7 million in FY2018. This estimate accounts for 11 months of collections following the change in tax reduced by anticipated FY2018 revenue collections from the current tax. A net revenue gain of approximately $13.8 million is expected in FY2019.
Additional administrative costs incurred by the State Tax Department are expected to be $50,000 for the remainder of FY2017, $20,000 in FY2018, and $10,000 for each year thereafter.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov