FISCAL NOTE

Date Requested: January 18, 2022
Time Requested: 04:16 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2000 Introduced SB415
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 this bill is to provide a personal income tax credit for 50% of the cost of a lifetime hunting, trapping and fishing license for certain veterans who have been discharged from the armed services who are certified by the Veterans Administration as not less than 50% totally disabled. According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is 50 percent of the license cost. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of roughly $90,000 a year beginning in FY2024. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2023. Additional administrative costs to the State Tax Department would be $32,500 for FY2024 and $5,000 for subsequent fiscal years.  



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 5,000
Personal Services 0 0 5,000
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 -90,000


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


According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is 50 percent of the license cost. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of roughly $90,000 a year beginning in FY2024. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2023. Additional administrative costs to the State Tax Department would be $32,500 for FY2024 and $5,000 for subsequent fiscal years.



Memorandum


The stated purpose of this bill is to provide a personal income tax credit for 50% of the cost of a lifetime hunting, trapping and fishing license for certain veterans who have been discharged from the armed services who are certified by the Veterans Administration as not less than 50% totally disabled. The effective date is unclear and could be affected by the required amendments to the rule authorized by W. Va. Code §20-2B-7, which will create a hunting, fishing, and trapping license for certain veterans. The bill purports to create a new article, 13KK; however, article 13KK already exists and has nothing to do with hunting, trapping, or fishing licenses, or with veterans.



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