FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 09:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1102 |
Introduced |
HB4406 |
|
|---|
| 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 provide that the first $100,000 of income filed jointly, or the first $50,000 filed individually, is exempt from the tax on social security.
Based on our interpretation, the legislation would amend §11-21-12(c) (8)(d) by re-wording the income limitation language pertaining to the decreasing modification for taxable Social Security benefits. Under current law, married joint filers with federal adjusted gross income greater than $100,000 or $50,000 for single filers are not entitled to the decreasing modification. The is no internal effective date. Therefore, the bill, if passed, would be effective for tax years beginning on or after January 1, 2025.
The provisions of the bill are vague and do not provide sufficient direction to generate an estimate of the potential revenue impact. In addition, there is insufficient information regarding the parameters of the bill to determine the potential additional administrative costs which would be incurred by the State Tax Department to implement the legislation.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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):
Based on our interpretation, the legislation would amend §11-21-12(c) (8)(d) by re-wording the income limitation language pertaining to the decreasing modification for taxable Social Security benefits. Under current law, married joint filers with federal adjusted gross income greater than $100,000 or $50,000 for single filers are not entitled to the decreasing modification. The is no internal effective date. Therefore, the bill, if passed, would be effective for tax years beginning on or after January 1, 2025.
The provisions of the bill are vague and do not provide sufficient direction to generate an estimate of the potential revenue impact. In addition, there is insufficient information regarding the parameters of the bill to determine the potential additional administrative costs which would be incurred by the State Tax Department to implement the legislation.
Memorandum
The stated purpose of this bill is to provide that the first $100,000 of income filed jointly, or the first $50,000 filed individually, is exempt from the tax on social security.
The tiered decreasing modification for social security income permitted in §11-21-12(c)(8)(A) through (C) is amended so that the limitation in Paragraph (D) is re-worded. Under current law, married joint filers with federal adjusted gross income greater than $100,000 or $50,000 for single filers are not entitled to the decreasing modification. In this bill, the modification is allowable up to the first $100,000 of federal adjusted gross income of a married couple filing a jointly or up to the first $50,000 for a single filer or married individual filing separately.
The language of the amendment is vague and could be interpreted in multiple ways.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov