FISCAL NOTE
Date Requested: February 14, 2017 Time Requested: 01:36 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1253 |
Introduced |
HB2429 |
|
CBD Subject: |
Education (Higher), Taxation |
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|
FUND(S):
General Revenu eFund
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 two-tiered personal income tax credit to parents or legal guardians who provide home or private, primary or secondary education for their children. The tax credit will be effective upon the completion of a school year and available at a rate per child of $1,000 for home schooling and $2,000 for private schooling. The bill authorizes rule-making.
Passage of this bill would result in a General Revenue Fund decline of approximately $31.9 million per year, beginning in FY2019. Due to the lack of an internal effective date, this bill would not become effective until the 2018 tax year.
Additional administrative costs would be $46,000 for FY2019 and $35,000 for each year following.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2017 Increase/Decrease (use"-") |
2018 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
35,000 |
Personal Services |
0 |
0 |
35,000 |
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 |
-31,900,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would result in a General Revenue Fund decline of approximately $31.9 million per year, beginning in FY2019. Due to the lack of an internal effective date, this bill would not become effective until the 2018 tax year.
Additional administrative costs would be $46,000 for FY2019 and $35,000 for each year following.
Memorandum
The stated purpose of this bill is to provide a two-tiered personal income tax credit to parents or legal guardians who provide home or private, primary or secondary education for their children. The tax credit will be effective upon the completion of a school year and available at a rate per child of $1,000 for home schooling and $2,000 for private schooling. The bill authorizes rule-making.
The credit is for a resident parent or legal guardian and is a change in policy. The bill provides a credit of $1,000 per child for home schooling and $2,000 per child for private schooling “pursuant to the educational requirements set by the State Board of Education for primary and secondary programs and standards.” It is unclear what the youngest age and oldest age a claim for a child may be made.
The bill requires the Tax Commissioner to provide rules for reporting, filing and application of claims for the credit.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov