FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 09:24 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1585 |
Introduced |
HB4366 |
|
|---|
| CBD Subject: |
|
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FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Decreases 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 abolish the personal income tax.
According to our interpretation, the bill would eliminate the personal income tax for tax years beginning after December 31, 2024.
Based on interpretation, the legislation, if passed, would decrease General Revenue Fund collections by roughly $809.3 million in FY2025 and by $2.1 billion in FY2026, the first full fiscal year of effect. By Statute, $30 million of annual personal income tax collections are dedicated to the Post Employment Benefit Trust Fund each year. Passage of this bill may impact future transfers beginning as early as FY2026.
Passage of the bill would eventually eliminate the personal income tax and withholding units of the State Tax Department. Administrative cost reductions by the State Tax Department would be $1.48 million in FY2026.
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 |
-1,480,000 |
| Personal Services |
0 |
0 |
-1,300,000 |
| Current Expenses |
0 |
0 |
-205,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
-25,000 |
| 2. Estimated Total Revenues |
0 |
-809,300,000 |
-2,100,000,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill would eliminate the personal income tax for tax years beginning after December 31, 2024.
Based on our interpretation, the legislation, if passed, would decrease General Revenue Fund collections by roughly $809.3 million in FY2025 and by $2.1 billion in FY2026, the first full fiscal year of effect. By Statute, $30 million of annual personal income tax collections are dedicated to the Post Employment Benefit Trust Fund each year. Passage of this bill may impact future transfers beginning as early as FY2026.
Passage of the bill would eventually eliminate the personal income tax and withholding units of the State Tax Department. Administrative cost reductions by the State Tax Department would be $1.48 million in FY2026.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov