FISCAL NOTE

Date Requested: February 22, 2017
Time Requested: 01:12 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2471 Introduced SB404
CBD Subject: Retirement, 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 reduce state income taxes for state and federal retirees by increasing the exemption on retirement income in calculating the federal gross income for state personal income tax purposes.
    
    The bill, as written, moves the decreasing modification for pension benefits from PERS, the Teachers’ Retirement System and federal retirement plans outside the calculations for the $8,000 senior citizens’ modification. The provisions of this bill would reduce General Revenue Fund collections by roughly $2.7 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional administrative costs to the State Tax Department would be minimal.
    
    



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 0
Personal Services 0 0 0
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):


    The bill, as written, moves the decreasing modification for pension benefits from PERS, the Teachers’ Retirement System and federal retirement plans outside the calculations for the $8,000 senior citizens’ modification. The provisions of this bill would reduce General Revenue Fund collections by roughly $2.7 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional administrative costs to the State Tax Department would be minimal.
    



Memorandum


    



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