FISCAL NOTE
Date Requested: February 11, 2019
Time Requested: 11:37 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1305 |
Introduced |
HB2957 |
|
|---|
| 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 permit residential customers of electric utilities to deduct up to 50 percent of their electric utility payments from their federal adjusted gross income for personal income tax purposes.
The bill, as written, provides a decreasing modification for Personal Income Tax for 50 percent of electric utility payments by the taxpayer beginning with Tax Year 2020. Passage of this bill would reduce General Revenue Fund collections by roughly $27.1 million per year, beginning in FY2021.
Additional administrative costs to the State Tax Department would be $50,000 in FY2021 and $40,000 per year 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 |
0 |
40,000 |
| Personal Services |
0 |
0 |
40,000 |
| 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 |
-27,100,000 |
Explanation of above estimates (including long-range effect):
The bill, as written, provides a decreasing modification for Personal Income Tax for 50 percent of electric utility payments by the taxpayer beginning with Tax Year 2020. Passage of this bill would reduce General Revenue Fund collections by roughly $27.1 million per year, beginning in FY2021.
Additional administrative costs to the State Tax Department would be $50,000 in FY2021 and $40,000 per year in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to permit residential customers of electric utilities to deduct up to 50 percent of their electric utility payments from their federal adjusted gross income for personal income tax purposes.
There may be a title defect. The bill title states that is adding a new article. However, the bill actually adds a new section. ยง11-21-12j.
The bill does not state that the electric utility payment is solely for the residence. It also does not make provisions for pass-through entities. A partner or owner may be a residential customer.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov