FISCAL NOTE
Date Requested: February 12, 2019 Time Requested: 01:11 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3201 |
Introduced |
SB582 |
|
CBD Subject: |
Taxation |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt feminine hygiene products and diapers from state sales tax.
Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY 2020 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2020 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2020.
Additional administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2020.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
1,000 |
0 |
Personal Services |
0 |
1,000 |
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 |
-625,000 |
-1,500,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would add an exemption from state sales tax for feminine hygiene products and diapers. The exemption would reduce revenue for both the General Revenue Fund and municipalities that impose a sales tax. Based on our interpretation, passage of this bill would result in a loss to General Revenue Fund collections of roughly $0.6 million in FY 2020 and $1.5 million in subsequent fiscal years. Passage would also result in a minimal loss of revenue to municipalities in FY2020 and a loss of roughly $100,000 in subsequent fiscal years. Absent an effective date in the bill, provisions of this bill would become effective on January 1, 2020.
Additional administrative costs incurred by the State Tax Department are expected to be $1,000 in FY2020.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov