FISCAL NOTE
Date Requested: February 19, 2020
Time Requested: 03:54 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2812 |
Comm. Sub. |
HB4558 |
|
|---|
| 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 the bill is to provide for a $1,000 tax credit for service by volunteer firefighters to West Virginia Personal Income Tax liabilities.
The proposed bill would allow volunteer firefighters with over 1 year of experience, active and in good standing with the fire department for the entire year, responded on-site to at least 30% of all calls, and has met all qualifications and certifications for the year to receive a tax credit of $1,000 or the total amount of personal income tax liability. If a household files married filing jointly and both individuals are volunteer firefighters with over a year of service, the tax credit can be $2,000 during a taxable year or the total amount of personal income liability Based on available information, the revenue loss associated with his bill would be roughly $5 million. This estimate is based on the assumption that all volunteer firefighters respond to 30 percent of the calls and have up-to-date certification. The number would be lower if all volunteer firefighters do not qualify for the credit.
Additional administrative costs to the State Tax Department would be $56,000 in FY2022 and $40,000 in subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
40,000 |
| Personal Services |
0 |
0 |
40,000 |
| 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 |
-5,000,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would allow volunteer firefighters with over 1 year of experience, active and in good standing with the fire department for the entire year, responded on-site to at least 30% of all calls, and has met all qualifications and certifications for the year to receive a tax credit of $1,000 or the total amount of personal income tax liability. If a household files married filing jointly and both individuals are volunteer firefighters with over a year of service, the tax credit can be $2,000 during a taxable year or the total amount of personal income liability Based on available information, the revenue loss associated with his bill would be roughly $5 million. This estimate is based on the assumption that all volunteer firefighters respond to 30 percent of the calls and have up-to-date certification. The number would be lower if all volunteer firefighters do not qualify for the credit.
Additional administrative costs to the State Tax Department would be $56,000 in FY2022 and $40,000 in subsequent years.
Memorandum
The stated purpose of the bill is to provide for a $1,000 tax credit for service by volunteer firefighters to West Virginia Personal Income Tax liabilities.
When a volunteer firefighter files a joint return with a taxpayer that is not a volunteer firefighter, it is unclear if the $1,000 credit is applied only to the income received by the volunteer firefighter or to any reported income.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov