FISCAL NOTE

Date Requested: February 12, 2019
Time Requested: 01:04 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3142 Introduced HB3063
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 allow a taxpayer a personal income tax credit, up to $500, for amounts expended on qualified educational expenses for each of the taxpayer’s children that participated in home educational instruction or attended a private school for the most recent academic year. Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $10.7 million per year, assuming full participation, beginning in FY2021. The bill allows a 100 percent tax credit for qualified educational expenses up to a maximum of $500 for each homeschooled child or a child enrolled in a private school. The bill becomes effective in Tax Year 2020. Administrative costs incurred by the State Tax Department are estimated to be $62,000 for FY2020 and $38,500 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 62,000 38,500
Personal Services 0 38,500 38,500
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 3,000 0
Other 0 15,000 0
2. Estimated Total Revenues 0 0 -10,700,000


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


Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $10.7 million per year, assuming full participation, beginning in FY2021. The bill allows a 100 percent tax credit for qualified educational expenses up to a maximum of $500 for each homeschooled child or a child enrolled in a private school. The bill becomes effective in Tax Year 2020. Administrative costs incurred by the State Tax Department are estimated to be $62,000 for FY2020 and $38,500 in subsequent fiscal years.



Memorandum






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