FISCAL NOTE
Date Requested: February 08, 2017 Time Requested: 05:02 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1500 |
Introduced |
HB2094 |
|
CBD Subject: |
|
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
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 taxpayer a personal income tax credit for each dependent that participated in home educational instruction for the most recent academic year.
Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $1.1 million per year, assuming full participation, beginning in FY2018 when eligible Personal Income Tax returns would be filed. Thereafter, the proposed bill could result in losses up to $1.2 million per year if enacted. As the credit is allowable for tax years beginning on or after January 1, 2017, there would be no fiscal effect in FY2017.
There would be no additional administrative costs incurred by the State Tax Department for the remainder of FY2017. Additional administrative costs incurred are expected to be $47,000 in FY2018 and $35,000 for each year thereafter.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2017 Increase/Decrease (use"-") |
2018 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
47,000 |
35,000 |
Personal Services |
0 |
42,000 |
35,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
1,000 |
0 |
Other |
0 |
4,000 |
0 |
2. Estimated Total Revenues |
0 |
-1,100,000 |
-1,200,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the proposed bill could result in an annual loss to the General Revenue Fund of up to $1.1 million per year, assuming full participation, beginning in FY2018 when eligible Personal Income Tax returns would be filed. Thereafter, the proposed bill could result in losses up to $1.2 million per year if enacted. As the credit is allowable for tax years beginning on or after January 1, 2017, there would be no fiscal effect in FY2017.
There would be no additional administrative costs incurred by the State Tax Department for the remainder of FY2017. Additional administrative costs incurred are expected to be $47,000 in FY2018 and $35,000 for each year thereafter.
Memorandum
The stated purpose of this bill is to allow a taxpayer a personal income tax credit for each dependent that participated in home educational instruction for the most recent academic year.
The language of the proposed bill may be construed in such a manner as to allow the tax credit for persons who fall under the other exceptions of West Virginia Code ยง18-8-1, such as children who attend private or parochial schools.
The proposed bill may also introduce administrative difficulties with respect to the academic year. The bill creates an ambiguity which could result in a Taxpayer claiming, and thus qualifying for, the credit in two separate tax years for the fall and spring terms. The proposed bill also fails to specify how the credit will be administered and whether the credit should be refundable or nonrefundable.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov