FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1336 |
Introduced |
HB2313 |
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| 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 this bill is to increase the amount of personal exemption for personal income tax from $2,000 to $4,000.
The bill would increase the Personal Exemption from the Personal Income Tax from $2,000 to $4,000 for individuals and their dependents, for each married partner filing separately, and for the additional exemption allowed a surviving spouse. The bill would not affect the $500 reduction allowed for taxpayers who are claimed as dependents on another return. The change would be effective for taxable years beginning on or after January 1, 2024.
Based on our interpretation, the proposed legislation would decrease General Revenue Fund collections attributable to current year returns by a minimal amount in FY2024 and $125.2 million in FY2025 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $25,000 in FY2024 and $5,000 in FY2025 and subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
25,000 |
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 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-125,200,000 |
Explanation of above estimates (including long-range effect):
The bill would increase the Personal Exemption from the Personal Income Tax from $2,000 to $4,000 for individuals and their dependents, for each married partner filing separately, and for the additional exemption allowed a surviving spouse. The bill would not affect the $500 reduction allowed for taxpayers who are claimed as dependents on another return. The change would be effective for taxable years beginning on or after January 1, 2024.
Based on our interpretation, the proposed legislation would decrease General Revenue Fund collections attributable to current year returns by a minimal amount in FY2024 and $125.2 million in FY2025 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $25,000 in FY2024 and $5,000 in FY2025 and subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov