FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 03:54 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1201 |
Introduced |
SB143 |
|
|---|
| 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 off this bill is to change the qualifier for low income to three hundred percent or less of the federal poverty guidelines from one-hundred fifty percent or less of the federal poverty guideline for a senior citizens’ homestead tax credit.
As written, this bill would extend the Senior Citizens’ Tax Credit for Property Tax paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose Federal Adjusted Gross Income is less than or equal to three hundred percent of the federal poverty guidelines based upon family size. Currently, the eligibility criterion is a Federal Adjusted Gross Income of less than or equal to one hundred fifty percent of the federal poverty guidelines. According to our interpretation, passage of this bill would result in an initial annual reduction in the General Revenue Fund of roughly $8 million to $10 million beginning in FY 2022. The number of senior citizens in West Virginia is expected to continue to grow. The annual reduction in General Revenue Fund collections would grow with the increase in number of senior citizens.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be $220,000 in FY2022 and $150,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
150,000 |
| Personal Services |
0 |
0 |
150,000 |
| 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 |
-10,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would extend the Senior Citizens’ Tax Credit for Property Tax paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose Federal Adjusted Gross Income is less than or equal to three hundred percent of the federal poverty guidelines based upon family size. Currently, the eligibility criterion is a Federal Adjusted Gross Income of less than or equal to one hundred fifty percent of the federal poverty guidelines. According to our interpretation, passage of this bill would result in an initial annual reduction in the General Revenue Fund of roughly $8 million to $10 million dollars beginning in FY 2022. The number of senior citizens in West Virginia is expected to continue to grow. The annual reduction in General Revenue Fund collections would grow with the increase in number of senior citizens.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be $220,000 in FY2022 and $150,000 in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov