FISCAL NOTE

Date Requested: February 17, 2017
Time Requested: 01:23 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1649 Introduced HB2539
CBD Subject: Actions, Suits and Liens, 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 permit a housing authority to garnish delinquent rents and other amounts owed to the authority from the renter’s income tax refund. The bill sets forth a procedure. The bill permits the Tax Commissioner and the applicable courts to receive a fee and costs. The bill provides for rule-making. According to our interpretation, the proposed bill would have no impact on revenues but would affect the administrative costs associated with fulfilling these requirements. The State Tax Department would incur additional costs of $50,000 in FY2019 and $25,000 for each year thereafter.



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 25,000
Personal Services 0 0 25,000
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 0


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


According to our interpretation, the proposed bill would have no impact on revenues but would affect the administrative costs associated with fulfilling these requirements. The State Tax Department would incur additional costs of $50,000 in FY2019 and $25,000 for each year thereafter.



Memorandum


The stated purpose of this bill is to permit a housing authority to garnish delinquent rents and other amounts owed to the authority from the renter’s income tax refund. The bill sets forth a procedure. The bill permits the Tax Commissioner and the applicable courts to receive a fee and costs. The bill provides for rule-making. The proposed bill contains some ambiguity with respect to offsets. Since the magistrate offset already exists, it would seem to have priority over this new offset, absent language to the contrary. Further, there is question as to whether the new offset may be repetitive of the existing magistrate offset, as referenced above.



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