FISCAL NOTE
Date Requested: February 01, 2016
Time Requested: 02:26 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1086 |
Introduced |
SB82 |
|
|---|
| 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 increase adjustments to gross income for military, National Guard and Reserve retirement income of resident individuals from $20,000 to $25,000.
The bill increases existing military pension income exclusions from up to $22,000 per year to up to $27,000 per year. Passage of this bill would reduce General Revenue Fund collections by roughly $750,000, beginning in FY2018.
Additional administrative costs to the State Tax Department associated with passage of this bill would be $6,000 in FY2018 and $5,000 per year thereafter.
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 |
0 |
5,000 |
| Personal Services |
0 |
0 |
5,000 |
| 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 |
-750,000 |
Explanation of above estimates (including long-range effect):
The bill increases existing military pension income exclusions from up to $22,000 per year to up to $27,000 per year. Passage of this bill would reduce General Revenue Fund collections by roughly $750,000, beginning in FY2018.
Additional administrative costs to the State Tax Department associated with passage of this bill would be $6,000 in FY2018 and $5,000 per year thereafter.
Memorandum
The stated purpose of this bill is to increase adjustments to gross income for military, National Guard and Reserve retirement income of resident individuals from $20,000 to $25,000.
By striking out the current effective year of “2002” and replacing it with “2016” in paragraph (B), subdivision (7), it could be interpreted that the modification in the current amount of $20,000 does not apply to tax year 2015 or 2016.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov