FISCAL NOTE
Date Requested: February 06, 2020
Time Requested: 12:01 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2689 |
Introduced |
HB4724 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
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 provide a tax credit to encourage new teachers to remain in the state and teach for five years after graduation.
According to our interpretation, passage of this bill would provide a Personal Income Tax credit of up to $1,200 for any new teacher who remains in West Virginia and works as a teacher for five years. We are unable to estimate the revenue loss associated with this bill. It is unclear when the credit is to be taken, who qualifies for the credit or the amount of credit allowed.
Additional administrative costs would be $35,000 in FY 2026 and $20,000 for subsequent years.
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 |
20,000 |
| Personal Services |
0 |
0 |
20,000 |
| 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 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would provide a Personal Income Tax credit of up to $1,200 for any new teacher who remains in West Virginia and works as a teacher for five years. We are unable to estimate the revenue loss associated with this bill. It is unclear when the credit is to be taken, who qualifies for the credit or the amount of credit allowed.
Additional administrative costs would be $35,000 in FY 2026 and $20,000 for subsequent years.
Memorandum
The stated purpose of this bill is to provide a tax credit to encourage new teachers to remain in the state and teach for five years after graduation.
The bill is vague. It is unclear whether all recipients get $1,200 or if the amount is dependent on the Personal Income Tax liability. The bill does not define “teacher”, “new teacher”, “remains in West Virginia” and “after graduation”. It is unclear whether a new teacher who lives in West Virginia but works in a border state qualifies for the credit. The bill is silent as to whether the teacher must be employed by a public school, private school or any other school or whether employment must be full-time. The bill is also silent as to when the credit may be taken—at the end of five years or pro rata over the five years.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov