FISCAL NOTE
Date Requested: January 20, 2022
Time Requested: 02:05 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1480 |
Introduced |
HB4294 |
|
|---|
| CBD Subject: |
Professions and Occupations |
|---|
|
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 the tax credit for volunteer firefighters to include all first responders.
The proposed bill would extend the existing credit against the personal income tax to all first responders, which the bill defines as “a law enforcement officer, paid firefighter, emergency medical technician, paramedic, or emergency dispatcher.” The amount of the nonrefundable credit for a first responder would be $1,000 during a taxable year. In order to qualify, a taxpayer must be employed as a first responder for more than half of the tax year. The tax credit would apply to first responders who work and/or live in West Virginia. The extended credit begins with the 2023 tax year.
According to our interpretation, passage of this bill would result in reduction in the General Revenue Fund of roughly $12 million per year beginning in FY2024.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be $66,500 in FY2024 and $45,000 in 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 |
45,000 |
| Personal Services |
0 |
0 |
45,000 |
| 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 |
-12,000,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would extend the existing credit against the personal income tax to all first responders, which the bill defines as “a law enforcement officer, paid firefighter, emergency medical technician, paramedic, or emergency dispatcher.” The amount of the nonrefundable credit for a first responder would be $1,000 during a taxable year. In order to qualify, a taxpayer must be employed as a first responder for more than half of the tax year. The tax credit would apply to first responders who work and/or live in West Virginia. The extended credit begins with the 2023 tax year.
According to our interpretation, passage of this bill would result in reduction in the General Revenue Fund of roughly $12 million per year beginning in FY2024.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be $66,500 in FY2024 and $45,000 in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov