FISCAL NOTE
Date Requested: January 19, 2023
Time Requested: 10:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2962 |
Introduced |
HB2808 |
|
|---|
| 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 allow gambling and lottery winnings to be written off against losses.
According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $1.3 million per year beginning Fiscal Year 2025. The legislation creates a decreasing modification for gambling and lottery losses.
Additional administrative costs incurred by the State Tax Department would be $20,000 in FY2025.
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 |
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 |
-1,300,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $1.3 million per year beginning Fiscal Year 2025. The legislation creates a decreasing modification for gambling and lottery losses.
Additional administrative costs incurred by the State Tax Department would be $20,000 in FY2025.
Memorandum
The stated purpose of this bill is to allow gambling and lottery winnings to be written off against losses.
The term "gambling" in the bill may be overly broad. It does not specify if only gambling losses at casinos and racetracks qualify or if other gambling losses would qualify.
The bill would require the taxpayer to maintain records substantiating losses but does not specify what those records should be. The bill does not provide a method for the verification of losses by the state taxing authority.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov