FISCAL NOTE
Date Requested: February 24, 2015
Time Requested: 01:56 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3170 |
Introduced |
HB2950 |
|
|---|
| 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 this bill is to provide for a $1,000 tax credit against personal income tax in tax years 2016-2017 for recent graduates of higher education programs.
According to our interpretation and based on available data, a Personal Income Tax credit for recent graduates of up to $1,000 would result in a revenue loss of $29. 6 million in FY2017 and a loss of $7.4 million in FY2018. Graduates from January 1, 2012 through December 31, 2015 would be able to take a credit in Tax Year 2016. A credit would be available in Tax Year 2017 for those taxpayers who graduated between January 1, 2013 and December 31, 2016 but did not take a credit in Tax Year 2016.
Additional administrative costs will be $45,500 in FY2017 and $30,000 in FY2018.
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 |
45,500 |
30,000 |
| Personal Services |
0 |
30,000 |
30,000 |
| Current Expenses |
0 |
10,500 |
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 and based on available data, a Personal Income Tax credit for recent graduates of up to $1,000 would result in a revenue loss of $29. 6 million in FY2017 and a loss of $7.4 million in FY2018. Graduates from January 1, 2012 through December 31, 2015 would be able to take a credit in Tax Year 2016. A credit would be available in Tax Year 2017 for those taxpayers who graduated between January 1, 2013 and December 31, 2016 but did not take a credit in Tax Year 2016.
Additional administrative costs will be $45,500 in FY2017 and $30,000 in FY2018.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov