FISCAL NOTE
Date Requested: January 13, 2020
Time Requested: 01:04 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2023 |
Introduced |
HB4152 |
|
|---|
| 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 personal income tax deduction for a stillborn child.
The proposed bill would add stillborn children to the definition of dependents under code §11-21-16. According to the proposed bill a stillborn child would be considered a dependent for the taxable year of the extraction or delivery, if the child would have been a dependent if alive. The bill would exclude any children stillborn due to abortion. The stillborn child would need a state fetal death certificate issued and no tax identification number would be required. The revenue loss associated with this Personal Income Tax exemption would be minimal in FY2021 and subsequent years.
Additional administrative costs to the State Tax Department would be $15,000 in FY2021 and $5,000 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 |
5,000 |
| Personal Services |
0 |
0 |
5,000 |
| 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 |
0 |
Explanation of above estimates (including long-range effect):
The proposed bill would add stillborn children to the definition of dependents under code §11-21-16. According to the proposed bill a stillborn child would be considered a dependent for the taxable year of the extraction or delivery, if the child would have been a dependent if alive. The bill would exclude any children stillborn due to abortion. The stillborn child would need a state fetal death certificate issued and no tax identification number would be required. The revenue loss associated with this Personal Income Tax exemption would be minimal in FY2021 and subsequent years.
Additional administrative costs to the State Tax Department would be $15,000 in FY2021 and $5,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to allow a personal income tax deduction for a stillborn child.
The proposed amendment incorrectly references §11-21-16(e)(A)(i). The bill has no paragraph (A). The bill explicitly denies the exemption for “any child who is stillborn by reason of an abortion.”
A tax identification number is not required to claim the exemption. The bill does not state if the TIN is not required for the parent or the stillborn child, but it is assumed that this applies to the stillborn child. The verification needed to claim the exemption is a state fetal death certificate. There is not a cross reference regarding a fetal death certificate, but the reference is presumably to W. Va. Code §16-5-21a, “Noah’s Law; certificate of birth for a stillbirth; and contents of certificate.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov