FISCAL NOTE
Date Requested: January 12, 2022
Time Requested: 04:50 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1217 |
Introduced |
SB144 |
|
|---|
| CBD Subject: |
|
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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 the bill is to provide for a provide for a $5,000 tax credit for service by volunteer firefighters to West Virginia personal income tax liabilities.
The proposed bill would allow volunteer firefighters who have been active members of volunteer fire departments for the entire year to receive a tax credit of up to $5,000 a year beginning with tax years ending after December 31, 2022. Current law allows a $1,000 tax credit for volunteer firefighters beginning with tax years ending after December 31, 2022. Based on available information, the revenue loss associated with this bill would be roughly $11.3 million in FY2024 and subsequent tax years. The credit cannot be carried forward.
Additional administrative costs to the State Tax Department would be $15,000 in FY2024.
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 |
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 |
-11,300,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would allow volunteer firefighters who have been active members of volunteer fire departments for the entire year to receive a tax credit of up to $5,000 a year beginning with tax years ending after December 31, 2022. Current law allows a $1,000 tax credit for volunteer firefighters beginning with tax years ending after December 31, 2022. Based on available information, the revenue loss associated with this bill would be roughly $11.3 million in FY2024 and subsequent tax years. The credit cannot be carried forward.
Additional administrative costs to the State Tax Department would be $15,000 in FY2024
Memorandum
The stated purpose of the bill is to provide for a provide for a $5,000 tax credit for service by volunteer firefighters to West Virginia personal income tax liabilities.
The bill needs to amend existing code. There is an existing article by the same name. Article 13JJ, Chapter 11 is also the West Virginia Volunteer Firefighter Tax Credit Act. The 2021 bill creates an act by the same name. The two acts are similar except for two major points. The current article, 13JJ, allows a credit of $1,000 per qualified person after December 31, 2022. The 2021 bill allows a $5,000 per qualified person after December 31, 2022.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov