FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 10:21 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1053 |
Introduced |
HB2489 |
|
|---|
| CBD Subject: |
|
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FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to simplify the manner in which a low-income senior citizen may claim certain tax credits.
According to our interpretation, the bill seeks to allow senior citizens who are eligible for the Senior Citizen’s property tax credit on the first $20,000 of taxable assessed value and the refundable credit for excess property taxes paid to receive the credits without having to file a Personal Income Tax return. The bill proposes that this be accomplished by amending the form the Department of Tax and Revenue sends to seniors who own real property.
Based on our interpretation, passage of the bill would have no effect on General Revenue Fund collections. The West Virginia Tax Division currently has in place a method for low-income Senior Citizen taxpayers to apply for the credits without filing a Personal Income Tax return.
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| 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, the bill seeks to allow senior citizens who are eligible for the Senior Citizen’s property tax credit on the first $20,000 of taxable assessed value and the refundable credit for excess property taxes paid to receive the credits without having to file a Personal Income Tax return. The bill proposes that this be accomplished by amending the form the Department of Tax and Revenue sends to seniors who own real property.
Based on our interpretation, passage of the bill would have no effect on General Revenue Fund collections. The West Virginia Tax Division currently has in place a method for low-income Senior Citizen taxpayers to apply for the credits without filing a Personal Income Tax return.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
The stated purpose of this bill is to simplify the manner in which a low-income senior citizen may claim certain tax credits.
This bill is vague and could affect entitlement to these credits since the requirement set forth in this bill do not correspond to the requirements set for in W. Va. Code §11-21-21 “Senior citizen’s tax credit for property tax paid on the first $20,000 of taxable assessed value of a homestead in this state” and §11-21-23 “Refundable credit for real property taxes paid in excess of four percent of gross household income.” The provisions include a new requirement that no one else lives in their home.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov