FISCAL NOTE
Date Requested: February 12, 2019
Time Requested: 01:04 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3142 |
Introduced |
HB3063 |
|
|---|
| 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 taxpayer a personal income tax credit, up to $500, for amounts expended on qualified educational expenses for each of the taxpayer’s children that participated in home educational instruction or attended a private school 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 $10.7 million per year, assuming full participation, beginning in FY2021. The bill allows a 100 percent tax credit for qualified educational expenses up to a maximum of $500 for each homeschooled child or a child enrolled in a private school. The bill becomes effective in Tax Year 2020.
Administrative costs incurred by the State Tax Department are estimated to be $62,000 for FY2020 and $38,500 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
62,000 |
38,500 |
| Personal Services |
0 |
38,500 |
38,500 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
3,000 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-10,700,000 |
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 $10.7 million per year, assuming full participation, beginning in FY2021. The bill allows a 100 percent tax credit for qualified educational expenses up to a maximum of $500 for each homeschooled child or a child enrolled in a private school. The bill becomes effective in Tax Year 2020.
Administrative costs incurred by the State Tax Department are estimated to be $62,000 for FY2020 and $38,500 in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov