FISCAL NOTE

Date Requested: February 12, 2021
Time Requested: 02:21 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1988 Introduced HB2353
CBD Subject:


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 establish a $1,000 tax credit for families who suffer the loss of a stillborn child. According to the proposed bill a $1,000 tax credit would allow for a family who suffers the loss of a stillborn child. For the proposed credit, “stillborn” is the loss of a baby after 20 weeks of pregnancy. The revenue loss associated with this Personal Income Tax credit would be $110,000 in FY2022 and subsequent years. Additional administrative costs to the State Tax Department would be $15,000 in FY2023 and $5,000 in subsequent fiscal years.



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 15,000 5,000
Personal Services 0 5,000 5,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 10,000 0
2. Estimated Total Revenues 0 -110,000 -110,000


Explanation of above estimates (including long-range effect):


According to the proposed bill a $1,000 tax credit would allow for a family who suffers the loss of a stillborn child. For the proposed credit, “stillborn” is the loss of a baby after 20 weeks of pregnancy. The revenue loss associated with this Personal Income Tax credit would be $110,000 in FY2022 and subsequent years. Additional administrative costs to the State Tax Department would be $15,000 in FY2023 and $5,000 in subsequent fiscal years.



Memorandum


The stated purpose of this bill is to establish a $1,000 tax credit for families who suffer the loss of a stillborn child. The bill authorizes a one-time credit in the amount of $1,000 against the personal income tax for a family that suffers the loss of a stillborn child. “Family” is not defined, so it is unclear whether a single mother, or a surrogate mother, or family that contracts with a surrogate mother, qualify for the credit. There is no internal effective date. Therefore, the first credit could be claimed in tax years beginning on and after December 31, 2021. There is no way to certify whether the “family” has suffered a stillborn child. This leaves the credit susceptible to false claims. The bill does not require the credit to be taken in the tax year of the stillbirth. This, along with the lack of certification, allows families that have suffered a stillbirth in prior years to claim the credit after the effective date. The bill does not state who may claim the credit other than a “family,” which is left as an undefined term. This leaves open the question of who can claim the credit if a couple is filing separately. This could also lead to claiming the credit by each spouse in separate years if filing separately. Though the bill specifies that the credit is a one-time credit, it does not specify that it is a nonrefundable credit, or whether carry forward or carry back of unused credit is allowed.



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