FISCAL NOTE

Date Requested: February 22, 2017
Time Requested: 01:11 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2470 Introduced SB403
CBD Subject: Retirement, 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 increase the amount of retirement income from public employee pensions, from $2,000 to $20,000, that is excluded from the calculation of income subject to state personal income taxes.
    
    The bill, as written, increases the decreasing modification from $2,000 to $20,000 for benefits received under PERS, the Teachers’ Retirement System and federal retirement beginning with Tax Year 2018. Passage of this bill would reduce General Revenue Fund collections by roughly $21.2 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional administrative costs would be minimal.
    
    



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 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -21,200,000


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


    The bill, as written, increases the decreasing modification from $2,000 to $20,000 for benefits received under PERS, the Teachers’ Retirement System and federal retirement beginning with Tax Year 2018. Passage of this bill would reduce General Revenue Fund collections by roughly $21.2 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional administrative costs would be minimal.
    



Memorandum


    



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