FISCAL NOTE
Date Requested: February 10, 2017
Time Requested: 10:07 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1378 |
Introduced |
HB2122 |
|
|---|
| CBD Subject: |
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 provide a tax credit for first time home buyers. The bill establishes eligibility criteria and sets a maximum credit of $5,000.
According to our interpretation and based on available data, a Personal Income Tax credit for first-time home buyers of up to $5,000 would result in a revenue loss of roughly $27.5 million a year, beginning in FY2019.
Additional administrative costs to the State Tax Department would be $45,800 in FY2019 and $32,000 in subsequent years.
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 |
0 |
31,800 |
| Personal Services |
0 |
0 |
31,800 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-27,500,000 |
-27,500,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation and based on available data, a Personal Income Tax credit for first-time home buyers of up to $5,000 would result in a revenue loss of roughly $27.5 million a year, beginning in FY2019.
Additional administrative costs to the State Tax Department would be $45,800 in FY2019 and $31,800 in subsequent years due to review of proof of “first time home buyer”.
Memorandum
The stated purpose of this bill is to provide a tax credit for first time home buyers. The bill establishes eligibility criteria and sets a maximum credit of $5,000.
Rules will need to be promulgated in order to administer this proposal, and no provisions for rule making are made in the bill. In addition, “principal residence” is not defined.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov