FISCAL NOTE

Date Requested: February 09, 2017
Time Requested: 08:58 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1423 Introduced HB2217
CBD Subject: Senior Citizens, Taxation


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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled from $8,000 to $16,000.
    
    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $16,000, effective for tax years beginning after December 31, 2016. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $59.5 million in FY2018. The annual cost of this increase will escalate over time as members of the baby-boom generation reach the age of sixty-five.
    
    Additional administrative costs would be $5,000 in FY2018.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 -59,500,000 0


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


    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $16,000, effective for tax years beginning after December 31, 2016. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $59.5 million in FY2018. The annual cost of this increase will escalate over time as members of the baby-boom generation reach the age of sixty-five.
    
    Additional administrative costs would be $5,000 in FY2018.
    
    
    



Memorandum


    



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