FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 04:01 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1280 |
Introduced |
SB186 |
|
|---|
| CBD Subject: |
Natural Resources, Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to establish the West Virginia Division of Natural Resources Police Officer Retirement System.
As written, this bill would exempt retirement income received from the West Virginia Public Employees Retirement System (PERS) for police officers, including those formerly classified as conservation officers, who retire from the Division of Natural Resources. If the exemption proposed by this bill is restructured to only apply to the portion of retirement income received from PERS that is attributable to service as a Division of Natural Resources police officer, the annual reduction in the General Revenue Fund would be roughly $220,000 per year beginning FY2022.
The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
Additional administrative costs would be $11,000 in FY2022 and $10,000 in fiscal years thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
10,000 |
| Personal Services |
0 |
0 |
10,000 |
| 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 |
-220,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would exempt retirement income received from the West Virginia Public Employees Retirement System (PERS) for police officers, including those formerly classified as conservation officers, who retire from the Division of Natural Resources. If the exemption proposed by this bill is restructured to only apply to the portion of retirement income received from PERS that is attributable to service as a Division of Natural Resources police officer, the annual reduction in the General Revenue Fund would be roughly $220,000 per year beginning FY2022.
The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
Additional administrative costs would be $11,000 in FY2022 and $10,000 in fiscal years thereafter.
Memorandum
The stated purpose of this bill is to exempt from state income taxation the state pension benefits received by retired Division of Natural Resources police officers.
This bill creates a different class within Public Employees Retirement System (PERS) retirees. The modification on its face does not include the retirement income of sheriffs or deputy sheriffs who are enrolled under PERS. Nor does it include state prison guards or parole officers, who are likewise enrolled in PERS.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov