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