FISCAL NOTE

Date Requested: January 11, 2019
Time Requested: 10:06 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1006 Introduced SB36
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to reinstate a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee. Retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) received a personal income tax adjustment equal to the amount of pension income not received through Tax Year 2014. This bill would reinstate the allowance of that decreasing modification beginning in Tax Year 2019 and terminating after the end of Tax Year 2021. Passage of the proposed legislation would result in a potential loss from Tax Year 2019 returns of approximately $400,000 occurring in FY2020. Approximately $400,000 in annual revenue losses are expected for the remaining years until termination. Additional administrative costs to the State Tax Department would be $10,000 in FY2020 and $10,000 in subsequent fiscal years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 20,000 10,000
Personal Services 0 10,000 10,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 10,000 0
2. Estimated Total Revenues 0 -400,000 -400,000


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


Retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) received a personal income tax adjustment equal to the amount of pension income not received through Tax Year 2014. This bill would reinstate the allowance of that decreasing modification beginning in Tax Year 2019 and terminating after the end of Tax Year 2021. Passage of the proposed legislation would result in a potential loss from Tax Year 2019 returns of approximately $400,000 occurring in FY2020. Approximately $400,000 in annual revenue losses are expected for the remaining years until termination. Additional administrative costs to the State Tax Department would be $20,000 in FY2020 and $10,000 in subsequent fiscal years.



Memorandum






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