FISCAL NOTE

Date Requested: January 14, 2016
Time Requested: 12:54 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1257 Introduced SB128
CBD Subject: Tax


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 provide a West Virginia personal income tax modification reducing federal adjusted gross income for people who have spayed or neutered their dog or cat.
    
    As written, the passage of this bill would provide a Personal Income Tax modification reducing adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. Passage of this bill would reduce General Revenue Fund collections by up to $600,000 per year beginning in FY2018. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2017.
    
    Additional administrative costs to the State Tax Department would be $14,000 in FY2017 and $5,000 in subsequent years.
    



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 14,000 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 9,000 0
2. Estimated Total Revenues 0 0 -600,000


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


    As written, the passage of this bill would provide a Personal Income Tax modification reducing adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. Passage of this bill would reduce General Revenue Fund collections by up to $600,000 per year beginning in FY2018. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2017.
    
    Additional administrative costs to the State Tax Department would be $14,000 in FY2017 and $5,000 in subsequent years.
    



Memorandum


    



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