FISCAL NOTE

Date Requested: January 13, 2020
Time Requested: 12:57 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2094 Introduced HB4126
CBD Subject: Motor Vehicles


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 provide taxpayers repaying their own student loans a modification reducing federal adjusted gross in the amount of the interest paid for personal income tax purposes. The proposed decreasing modification for student loan interest is allowed only to the extent the amount is not taken as a deduction when arriving at the taxpayer’s federal adjusted gross income for taxable years beginning after December 31, 2019. The revenue loss associated with this bill would be roughly $3.0 million per year beginning in FY2021. The modification would be effective beginning with tax year 2020. Additional administrative costs would be $30,000 in FY2021 and $20,000 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 30,000 20,000
Personal Services 0 20,000 20,000
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 -3,000,000 -3,000,000


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


The proposed decreasing modification for student loan interest is allowed only to the extent the amount is not taken as a deduction when arriving at the taxpayer’s federal adjusted gross income for taxable years beginning after December 31, 2019. The revenue loss associated with this bill would be roughly $3.0 million per year beginning in FY2021. The modification would be effective beginning with tax year 2020. Additional administrative costs would be $30,000 in FY2021 and $20,000 in subsequent fiscal years.



Memorandum






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