FISCAL NOTE

Date Requested: April 01, 2021 Time Requested: 01:53 PM

Agency: Tax & Revenue Department, WV State CBD Number: Version: Bill Number: Resolution Number: 3427 Introduced SB661 CBD Subject: Taxation

FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses

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Fiscal Note Summary

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

The stated purpose of this bill is to permit retailers to assume or absorb any sales or use tax assessed on tangible personal property. According to our interpretation, the consumer does not have to pay the Consumers Sales Tax if the tax is assumed or absorbed by the vendor. There would be no revenue impact from this provision. Additional administrative costs incurred by the Tax Department would be $5,000 in FY2022.

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Fiscal Note Detail

Effect of Proposal	Fiscal Year
	2021 Increase/Decrease (use"-")	2022 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	5,000	0
Personal Services	0	0	0
Current Expenses	0	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	5,000	0
2. Estimated Total Revenues	0	0	0

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

According to our interpretation, the consumer does not have to pay the Consumers Sales Tax if the tax is assumed or absorbed by the vendor. There would be no revenue impact from this provision. Additional administrative costs incurred by the Tax Department would be $5,000 in FY2022.

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Memorandum

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