FISCAL NOTE

Date Requested: January 10, 2019
Time Requested: 03:23 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1731 Introduced HB2208
CBD Subject: Fire Fighting and Prevention


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 members of volunteer fire departments and rescue squads who have successfully completed required training and are covered by workers' compensation, a $5,000 modification reducing federal adjusted gross income for personal income tax purposes. Under the provisions of this bill, members of volunteer fire departments and rescue squads who have successfully completed required training and are covered by workers’ compensation are entitled to a $5,000 modification reducing federal adjusted gross income. This proposal would result in a revenue loss of $2.4 million per year beginning FY2021. Due to lack of effective date, the provisions would take effect for Tax Year 2020. Additional costs to the State Tax Department would be $56,000 in FY2021 and $40,000 per year in fiscal years thereafter.



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 0 40,000
Personal Services 0 0 40,000
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 -2,400,000


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


Under the provisions of this bill, members of volunteer fire departments and rescue squads who have successfully completed required training and are covered by workers’ compensation are entitled to a $5,000 modification reducing federal adjusted gross income. This proposal would result in a revenue loss of $2.4 million per year beginning FY2021. Due to lack of effective date, the provisions would take effect for Tax Year 2020. Additional costs to the State Tax Department would be $56,000 in FY2021 and $40,000 per year in fiscal years thereafter.



Memorandum


The stated purpose of this bill is to allow members of volunteer fire departments and rescue squads who have successfully completed required training and are covered by workers' compensation, a $5,000 modification reducing federal adjusted gross income for personal income tax purposes. There is no definition of “auxiliary member” or “rescue squad” in the bill. The bill does not specify if the tax credit can be carried forward or backward, or whether it is refundable or nonrefundable.



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