FISCAL NOTE
Date Requested: January 15, 2019
Time Requested: 02:55 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1654 |
Introduced |
HB2371 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, Other Post-Employment Budget Trust Fund
Sources of Revenue:
General Fund Other Post-Employment Budget Trust Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to abolish the personal income tax.
According to our interpretation, this bill would abolish Personal Income Tax for tax years beginning after December 31, 2019. Passage of this bill would reduce the General Revenue Fund collections by roughly $807 million in FY2020, $2.2 billion in FY2021, $2.3 billion in FY2022 and $2.3 billion in FY2023. In addition, the Other Post-Employment Budget Trust Fund would lose $30 million per fiscal year in dedicated Personal Income Tax Revenue.
Administrative cost savings incurred by the State Tax Department would be $1.5 million in FY2021 and each of the fiscal years thereafter.
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 |
0 |
-1,500,000 |
| Personal Services |
0 |
0 |
-1,300,000 |
| Current Expenses |
0 |
0 |
-200,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
807,000,000 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would abolish Personal Income Tax for tax years beginning after December 31, 2019. Passage of this bill would reduce the General Revenue Fund collections by roughly $807 million in FY2020, $2.2 billion in FY2021, $2.3 billion in FY2022 and $2.3 billion in FY2023. In addition, the Other Post-Employment Budget Trust Fund would lose $30 million per fiscal year in dedicated Personal Income Tax Revenue.
Administrative cost savings incurred by the State Tax Department would be $1.5 million in FY2021 and each of the fiscal years thereafter.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov