FISCAL NOTE

Date Requested: January 31, 2020
Time Requested: 01:54 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2096 Introduced HB4628
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

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 individuals to voluntarily contribute to the Make-A-Wish Foundation of Greater Pennsylvania and West Virginia. Passage of this bill would result in the creation of a voluntary check-off on the Personal Income Tax returns for taxpayers who wish to contribute to the “Make-A-Wish Foundation”. The new check-offs may result in the voluntary contribution of a modest sum of funds to provide a source of revenue to the Make-A-Wish program. Passage of this bill would have no effect on General Revenue Fund Collections. Additional administrative costs to the State Tax Department would be $40,000 in FY2022 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 0 20,000
Personal Services 0 0 20,000
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):


Passage of this bill would result in the creation of a voluntary check-off on the Personal Income Tax returns for taxpayers who wish to contribute to the “Make-A-Wish Foundation”. The new check-offs may result in the voluntary contribution of a modest sum of funds to provide a source of revenue to the Make-A-Wish program. Passage of this bill would have no effect on General Revenue Fund Collections. Additional administrative costs to the State Tax Department would be $60,000 in FY2022 and $40,000 in subsequent fiscal years,



Memorandum


The stated purpose of this bill is to permit individuals to voluntarily contribute to the Make-A-Wish Foundation of Greater Pennsylvania and West Virginia. The Make-A-Wish Foundation of Greater Pennsylvania and West Virginia (hereinafter, “the Foundation”) is a 26 USC §501 (c) (3) organization, not administered or established by this state. The Legislature does not have authority to direct administration of the Foundation. The bill requires the Tax Commissioner to provide a check-off on the Personal Income Tax return forms so that a taxpayer or a taxpayer and spouse, if a joint return, …may donate a portion or all of his or her tax refund to the Make-A-Wish Foundation of Greater Pennsylvania and West Virginia to be used exclusively for the purpose of granting wishes to medically-eligible children who have life-threatening medical conditions and who reside in the State of West Virginia. The bill creates a special escrow fund, “Make-A-Wish Foundation of Greater Pennsylvania and West Virginia Fund” (hereinafter “the Fund”) in the State Treasury to “receive deposits” from the check-off. The bill requires the total amount of donations received from the check-off to be deposited into the Fund but does not direct the Tax Commissioner to make such deposits. The State Treasurer is required to remit the balance of monies in the Fund to the Foundation every three months. The bill directs the Foundation to use the moneys derived from the check-off to children who reside in West Virginia who have life threatening medical conditions. The authority of the West Virginia Legislature does not extend to directing policy of a charitable organization. The designation of granting expenditures only for children residing in West Virginia may be contrary to 26 USC §501 (c)(3) policy, administration or rules and possibly be contrary to equal treatment under the law. The bill gives discretion for the Joint Committee on Government and Finance to request a report from the Foundation. However, the bill requires at a minimum “an accounting of donations from and expenditures in West Virginia.” Again, the Legislature does not have direct authority over a multi-state charitable foundation.



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