FISCAL NOTE

Date Requested: January 22, 2016
Time Requested: 09:30 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1761 Introduced SB349
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to update the meaning of federal adjusted gross income and certain other terms used in the West Virginia Personal Income Tax Act; change the due date for partnership returns; and specify effective dates. As written, this bill will update West Virginia’s Personal Income Tax Law to conform with the laws of the United States, in effect prior to January 1, 2016, that relate to the determination of income for federal income tax purposes. That is, State law will conform to federal statutes for changes made before January 1, 2016. Federal tax law provisions enacted in 2015 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2017. This proposed update incorporates recent tax changes associated with the Protecting Americans from Tax Hikes Act of 2015 (PATH). The revenue impact due to changes in due dates for the partnership returns has also been incorporated in the Governor’s official estimates for FY 2017. Additional administrative costs to the State Tax Department associated with this bill will be $6,550 in FY 2017.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 6,550 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 6,550 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


As written, this bill will update West Virginia’s Personal Income Tax Law with the laws of the United States, in effect prior to January 1, 2016, that relate to the determination of income for federal income tax purposes. That is, State law will conform to federal statutes for changes made before January 1, 2016. Federal tax law provisions enacted in 2015 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2017. This proposed update incorporates recent tax changes associated with the Protecting Americans from Tax Hikes Act of 2015 (PATH). The major changes include the permanent extension of Section 179 expensing provisions for qualified small businesses, the extension of the first-year 50 percent bonus depreciation for capital investments, and the extension of the deduction for certain expenses of elementary and secondary school teachers. The revenue impact due to changes in due dates for the partnership returns has also been incorporated in the Governor’s official estimates for FY 2017. Additional administrative costs to the State Tax Department associated with this bill will be $6,550 in FY 2017.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov