FISCAL NOTE
Date Requested: February 09, 2015
Time Requested: 12:40 PM |
| Agency: |
State Tax & Revenue Department |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2100 |
Introduced |
HB2668 |
|
|---|
| CBD Subject: |
Tax |
|---|
|
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 the bill is to permit deed of trust or mortgage interest paid on taxpayers’ personal residences to be used as a deduction for personal income tax purposes up to $4,000 per year.
According to our interpretation, this modification would be available to both those who claim itemized deductions for federal income tax purposes as well as non-itemizers. If the bill applies to both itemizers and non-itemizers, General Revenue Fund collections could be reduced by roughly $63 million beginning in FY2017.
Additional administrative costs to the State Tax Department will be $5,000 in FY2017.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
5,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
5,000 |
| 2. Estimated Total Revenues |
0 |
0 |
-63,000,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this modification would be available to both those who claim itemized deductions for federal income tax purposes as well as non-itemizers. If the bill applies to both itemizers and non-itemizers, General Revenue Fund collections could be reduced by roughly $63 million beginning in FY2017.
Additional administrative costs to the State Tax Department will be $5,000 in FY2017.
Memorandum
The stated purpose of the bill is to permit deed of trust or mortgage interest paid on taxpayers’ personal residences to be used as a deduction for personal income tax purposes up to $4,000 per year.
“Personal residence” is not defined in the bill.
The title and note refer to the modification reducing federal adjusted gross income as a deduction.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov