FISCAL NOTE
Date Requested: January 19, 2026
Time Requested: 04:20 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2672 |
Introduced |
SB496 |
|
|---|
| CBD Subject: |
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 is to modify the federal adjusted gross income with respect to retirement income.
This bill would exempt amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the Federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the West Virginia Public Employees’ Retirement System, or any other retirement system of the State of West Virginia or any political subdivision from Personal Income Tax. Some of the retirement income including in this list are already exempt, such as Social Security benefits, Railroad Retirement benefits, benefits for West Virgina and municipal police and fire retirement systems, and a portion of retirement income from Teachers Retirement, Public Employees Retirement and federal civil service retirement. We are unable to accurately determine the revenue loss from this bill due to lack of information on other retirement systems of the United States government, West Virginia government or any political subdivisions, but the loss would be significant.
Additional administrative costs would be $84,950 in FY2027 and $66,800 in FY2028 and subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
84,950 |
66,800 |
| Personal Services |
0 |
66,800 |
66,800 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would exempt amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the Federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the West Virginia Public Employees’ Retirement System, or any other retirement system of the State of West Virginia or any political subdivision from Personal Income Tax. Some of the retirement income including in this list are already exempt, such as Social Security benefits, Railroad Retirement benefits, benefits for West Virgina and municipal police and fire retirement systems, and a portion of retirement income from Teachers Retirement, Public Employees Retirement and federal civil service retirement. We are unable to accurately determine the revenue loss from this bill due to lack of information on other retirement systems of the United States government, West Virginia government or any political subdivisions, but the loss would be significant.
Additional administrative costs would be $84,950 in FY2027 and $66,800 in FY2028 and subsequent fiscal years.
Memorandum
The stated purpose of this bill is to is to modify the federal adjusted gross income with respect to retirement income.
The bill's effective date is "for taxable years beginning on or before January 1, 2027." This effective date indicates that the modification would not be allowed after January 1, 2027. Furthermore, the bill does not indicate how far back the modification could be claimed, only that the taxable year is before January 1, 2027.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov