FISCAL NOTE

Date Requested: February 23, 2021
Time Requested: 12:48 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2280 Introduced SB402
CBD Subject:


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:





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 in certain circumstances the parent who pays the child support has the right to claim the dependent children for income tax purposes. The proposed bill would have no impact on the State revenue or costs.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
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):


The proposed bill would have no impact on the State costs or revenue.



Memorandum


The stated purpose of this bill is to provide that in certain circumstances the parent who pays the child support has the right to claim the dependent children for income tax purposes. This bill essentially changes which parent has the right to claim dependent children for income tax purposes before consideration of certain exceptions. With the change, the parent paying child support (payor) will have that right to claim dependent children rather than the parent receiving the child support payments (payee). There may be a conflict with the Qualifying Child test on the federal return when it comes to the aspect of residency, a factor when calculating federal taxes.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov