FISCAL NOTE

Date Requested: January 29, 2019
Time Requested: 03:56 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2918 Introduced SB457
CBD Subject: Taxation


FUND(S):

General Revenue Fund, municipal funds

Sources of Revenue:

General Fund municipal funds

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 sales by not for profit volunteer school support groups for elementary or secondary schools that hold fund raisers for their schools that last no more than 14 consecutive days and are held no more than 18 times during a rolling 12-month period from the sales and use tax without regard to whether the organization is a 501(c)(3) or (c)(4) tax exempt organization under the Internal Revenue Code.
    
    Passage of this bill would add an exemption for sales by school support groups that hold fundraisers for their schools that last no more than fourteen consecutive days and are held no more than eighteen times during twelve-month period whether the group is a 501(c)(3) or 501(c)(4) organization or not. The State Tax Department does not have sufficient information to determine the revenue loss to the General Revenue Fund or to municipalities that levy a sales tax. We have no information on how many of these groups would be holding such sales or the dollar amount or number of sales they would have. However, we expect the revenue loss to be minimal.
    
    There would be no additional administrative costs incurred by the State Tax Department.
    
    



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 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):


    Passage of this bill would add an exemption for sales by school support groups that hold fundraisers for their schools that last no more than fourteen consecutive days and are held no more than eighteen times during twelve-month period whether the group is a 501(c)(3) or 501(c)(4) organization or not. The State Tax Department does not have sufficient information to determine the revenue loss to the General Revenue Fund or to municipalities that levy a sales tax. We have no information on how many of these groups would be holding such sales or the dollar amount or number of sales they would have. However, we expect the revenue loss to be minimal.
    
    There would be no additional administrative costs incurred by the State Tax Department.
    
    



Memorandum


    



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