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