FISCAL NOTE

Date Requested: January 18, 2018
Time Requested: 02:57 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1126 Introduced SB311
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is to provide a consumers sales and service tax and use tax exemption for certain services and tangible personal property sold for the repair, remodeling and maintenance of aircraft owned and operated under a fractional ownership program.
    
    Based on our interpretation, the proposed bill would result in a minimal loss of sales taxes for FY2019 and each year thereafter.
    
    One-time costs to the State Tax Department would be $1,500 for FY2019. No substantial annual costs are expected thereafter.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,500 0
Personal Services 0 1,000 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 500 0
2. Estimated Total Revenues 0 0 0


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


    Based on our interpretation, the proposed bill would result in a minimal loss of sales taxes for FY2019 and each year thereafter.
    
    One-time costs to the State Tax Department would be $1,500 for FY2019. No substantial annual costs are expected thereafter.
    



Memorandum


    The stated purpose of this bill is to provide a consumers sales and service tax and use tax exemption for certain services and tangible personal property sold for the repair, remodeling and maintenance of aircraft owned and operated under a fractional ownership program.
    
    The proposed bill bases its definition of fractional ownership on federal regulations. This could create issues if federal regulations are changed or if fractional ownership programs are redefined. As written, the bill does not clarify how the Tax Department is to determine that an airplane is part of a fractional ownership program.
    



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