FISCAL NOTE
Date Requested: January 09, 2019 Time Requested: 04:14 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1649 |
Introduced |
HB2098 |
|
CBD Subject: |
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 allow a taxpayer a personal income tax credit for each dependent that participated in home educational instruction for the most recent academic year.
Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $1.2 million per year, assuming full participation, beginning in FY2020. The bill allows a credit of up to $100 for each homeschooled child.
Administrative costs incurred by the State Tax Department are estimated to be $56,000 for FY2020 and $40,000 in subsequent fiscal years.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
56,000 |
40,000 |
Personal Services |
0 |
40,000 |
40,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
1,000 |
0 |
Other |
0 |
15,000 |
0 |
2. Estimated Total Revenues |
0 |
-1,200,000 |
-1,200,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $1.2 million per year, assuming full participation, beginning in FY2020. The bill allows a credit of up to $100 for each homeschooled child.
Administrative costs incurred by the State Tax Department are estimated to be $56,000 for FY2020 and $40,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to allow a taxpayer a personal income tax credit for each dependent that participated in home educational instruction for the most recent academic year.
The bill would be very difficult to administer. The bill lacks provisions, such as reporting requirements, rulemaking authority for the Tax Department, and recordkeeping requirements.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov