FISCAL NOTE

Date Requested: January 21, 2016
Time Requested: 02:03 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1972 Introduced SB355
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 the consumers sales and service tax and the use tax on sales of telecommunications service and ancillary services.
    
    The proposed bill would have an estimated revenue impact of $10 million for the remainder of Fiscal Year 2016 if enacted beginning April 1, 2016 and a $60 million annual impact thereafter. This tax is included in the budget presented by the Governor in his estimates for FY 2017.
    
    Administrative costs to the State Tax Department will be $15,000 in FY 2017 and $15,000 for each year thereafter.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 15,000 15,000
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 10,000,000 60,000,000 60,000,000


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


    The proposed bill would have an estimated revenue impact of $10 million for the remainder of Fiscal Year 2016 if enacted beginning April 1, 2016 and a $60 million annual impact thereafter. This tax is included in the budget presented by the Governor in his estimates for FY 2017.
    
    Administrative costs to the State Tax Department will be $15,000 in FY 2017 and $15,000 for each year thereafter.
    



Memorandum


    



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