FISCAL NOTE
Date Requested: March 11, 2021
Time Requested: 11:27 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1591 |
Introduced |
HB3066 |
|
|---|
| CBD Subject: |
Military and Veterans |
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|
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 expand state income tax exemptions to all disabled veterans as certified by the Veteran Administration in connection with their military service, and the next of kin (Gold star certified family) to all military members killed in action and those who are prisoners of war.
The bill would add the retirement income of all veterans who are disabled in connection with their military service as certified by the Veterans Administration and the next of kin to all military members killed in action and those who are prisoners of war to the list of eligible military retirement benefits fully exempt from State Personal Income tax. The revenue impact from exempt retirement income from the Department of Deference for veterans would be minimal. Currently, all military pensions and disability income are exempt from Personal Income. Tax We have no data to determine the loss associated with the exemption for the next kin of military personnel who were killed in action or are prisoners of war.
Additional administrative costs would be $10,000 in FY2022.
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 |
10,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| 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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The bill would add the retirement income of all veterans who are disabled in connection with their military service as certified by the Veterans Administration and the next of kin to all military members killed in action and those who are prisoners of war to the list of eligible military retirement benefits fully exempt from State Personal Income tax. The revenue impact from exempt retirement income from the Department of Deference for veterans would be minimal. Currently, all military pensions and disability income are exempt from Personal Income. Tax We have no data to determine the loss associated with the exemption for the next kin of military personnel who were killed in action or are prisoners of war.
Additional administrative costs would be $10,000 in FY2022.
Memorandum
The stated purpose of this bill is to expand state income tax exemptions to all disabled veterans as certified by the Veteran Administration in connection with their military service, and the next of kin (Gold star certified family) to all military members killed in action and those who are prisoners of war.
Paragraph (c)(7)(C) of W. Va. Code §11-21-12 was amended in 2018 so that the reducing modification for military retirement income was expanded to include the federal uniformed services. This bill purports to expand the reducing modification to include “all veterans who have faithfully served their country and have been found to be disabled as certified by the Veteran Administration in connection with their military service, and the next of kin (Gold star certified family) to all military members killed in action and those who are prisoners of war.”
The bill expands the reducing modification to the next of kin (Gold star certified family) of “military members” “killed in action” and “prisoners of war.” Here, the use of “military members” is narrower than the term “uniformed services,” and so may lead to confusion. Furthermore, as the subdivision applies to “retirement income . . . paid by the United States or by this state after December 31, 2018 . . .,” the new language could be construed to exempt the retirement income of next of kin received as payment in their personal capacity for their own federal or state retirement, rather than retirement (or survivorship annuity) payments received in their capacity as surviving kin of one who is KIA or POW.
“Gold star certified family” often refers to parents, siblings, spouses, and children of military members killed in (military) action. Without limitation or clarification, this may lead to difficulty in administration of the bill.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov