FISCAL NOTE
Date Requested: February 04, 2015 Time Requested: 01:41 PM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2611 |
Introduced |
HB2597 |
|
CBD Subject: |
Tax |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt all monetary benefits derived from military retirement from personal income tax obligations.
The bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. This change would be effective beginning with the 2016 tax year. Passage of this bill would reduce General Revenue Fund collections by roughly $1.8 million, beginning in FY2017.
Additional administrative costs would be minimal in FY2016. There would be no additional administrative costs to the Tax Department in subsequent years.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
5,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
5,000 |
0 |
2. Estimated Total Revenues |
0 |
0 |
-1,800,000 |
Explanation of above estimates (including long-range effect):
The bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. This change would be effective beginning with the 2016 tax year. Passage of this bill would reduce General Revenue Fund collections by roughly $1.8 million, beginning in FY2017.
Additional administrative costs would be minimal in FY2016. There would be no additional administrative costs to the Tax Department in subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov