FISCAL NOTE

Date Requested: March 25, 2017
Time Requested: 09:46 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3246 Introduced HB3034
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 exempt all monetary benefits derived from military retirement from personal income tax obligations.
    
    The bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. This change would be effective beginning with the 2017 tax year. Passage of this bill would reduce General Revenue Fund collections by roughly $3.1 million, beginning in FY2018.
    
    Additional administrative costs would be minimal in FY2019. There would be no additional administrative costs to the Tax Department 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 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 -3,100,000 -3,100,000


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


    The bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. This change would be effective beginning with the 2018 tax year. Passage of this bill would reduce General Revenue Fund collections by roughly $3.1 million, beginning in FY2019.
    
    Additional administrative costs would be minimal in FY2019. There would be no additional administrative costs to the Tax Department in subsequent years.
    



Memorandum


    



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