FISCAL NOTE

Date Requested: October 17, 2017
Time Requested: 07:59 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
5002 Introduced HB201
CBD Subject: Governor -- Bills Requested By, Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to exempt from personal income tax military retirement income, including retirement income from the regular Armed Forces, reserves and National Guard paid by the United States or by this state after December 31, 2017, including any survivorship annuities, to the extent included in gross income for federal income tax purposes for the taxable year. 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.



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 -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