FISCAL NOTE
Date Requested: January 27, 2023
Time Requested: 03:52 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3144 |
Introduced |
SB498 |
|
|---|
| CBD Subject: |
Courts |
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|
FUND(S):
General Revenue Fund, Juror Counseling Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses, Creates New Fund: Juror Counseling Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify the process of jury service. The bill provides for a tax creditor to eligible taxpayers for wages paid to any employee during the first five days of such employee’s jury service. The bill provides for the amount and applicability of the tax credit. The bill provides for treatment of unused tax credit. The bill clarifies that a potential juror may be excused from jury service upon a showing of undue physical or financial hardship. The bill defines undue physical or financial hardship. The bill eliminates extreme inconvenience as a reason that a potential juror may be excused from jury service. The bill clarifies that absence from place of employment may not excuse a potential juror from jury service. The bill authorizes courts to grant postponement of jury service and establishes requirements therefor. The bill authorizes courts to grant a second or subsequent postponement of jury service in extreme emergencies and establishes requirements therefor. The bill authorizes $80 per day juror compensation and provides an internal effective date therefor. The bill authorizes courts to offer post-trial psychological counseling to jurors and alternates in trials of certain criminal offenses. The bill authorizes requirements and options for juror counseling. The bill creates the “Juror Counseling Fund” as a special revenue account to be maintained by the Supreme Court of Appeals and establishes requirements therefor. Finally, the bill clarifies that funding of or legislative appropriation to the Juror Counseling Fund is not mandatory.
This fiscal note only considers the tax implications of this bill. The bill provides for a tax credit to eligible taxpayers for wages paid to any employee during the first five days of such employee’s jury service. The tax credit would apply to the Personal Income Tax and Corporation Net Income Tax. The aggregate amount of credit shall not exceed 50 percent of the tax due for the taxable year. This credit would be effective for tax years beginning on or after January 1, 2024. Data from the West Virginia Supreme Court of Appeals indicates that through FY2022 and the first six months of FY2023 the average annual jury service reimbursement is 17,500 days of jury service per year. Further, the West Virginia Supreme Court of Appeals does not keep track of the number of jury trials in circuit court, however, there were an average of 15.8 jury trials in magistrate court per year since 2017. If the jury reimbursement rate increased from $40 per day to $80 per day, the annual increase in juror pay would be $700,000 per year. Average jury trials last no more than three days, but more complex trials may last much longer. Given that the juror must be gainfully employed with a private sector company, and average weekly wages are roughly $1,000, total tax credit cost may average up to $0.5 million per year.
Administrative costs incurred by the State Tax Department would be $32,500 in FY2025 and $22,500 in subsequent 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 |
0 |
22,500 |
| Personal Services |
0 |
0 |
22,500 |
| 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 |
-500,000 |
Explanation of above estimates (including long-range effect):
This fiscal note only considers the tax implications of this bill. The bill provides for a tax credit to eligible taxpayers for wages paid to any employee during the first five days of such employee’s jury service. The tax credit would apply to the Personal Income Tax and Corporation Net Income Tax. The aggregate amount of credit shall not exceed 50 percent of the tax due for the taxable year. This credit would be effective for tax years beginning on or after January 1, 2024. Data from the West Virginia Supreme Court of Appeals indicates that through FY2022 and the first six months of FY2023 the average annual jury service reimbursement is 17,500 days of jury service per year. Further, the West Virginia Supreme Court of Appeals does not keep track of the number of jury trials in circuit court, however, there were an average of 15.8 jury trials in magistrate court per year since 2017. If the jury reimbursement rate increased from $40 per day to $80 per day, the annual increase in juror pay would be $700,000 per year. Average jury trials last no more than three days, but more complex trials may last much longer. Given that the juror must be gainfully employed with a private sector company, and average weekly wages are roughly $1,000, total tax credit cost may average up to $0.5 million per year.
Administrative costs incurred by the State Tax Department would be $32,500 in FY2025 and $22,500 in subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov