FISCAL NOTE
Date Requested: February 11, 2020
Time Requested: 12:42 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3069 |
Introduced |
HB4952 |
|
|---|
| 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 provide a personal income tax credit of $1,500 for employees of the West Virginia Department of Health & Human Resources Child Protection Services. The bill authorizes rule making.
Based on our interpretation, passage of the bill would result in a personal income tax credit of $1,500 dollars for employees of West Virginia Department of Health & Human Resources Child Protective Services. According to the West Virginia Department of Health and Human Services, there are currently 548 employees that have Child Protective Services in their official job classification. Based upon this information, there would be a reduction of less than $800,000 per year, beginning in FY2022, to the General Revenue Fund.
Additional administrative costs to the Tax Department would be $55,000 in FY2022 and $40,000 in subsequent 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 |
40,000 |
| Personal Services |
0 |
0 |
40,000 |
| 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 |
-800,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, passage of the bill would result in a personal income tax credit of $1,500 dollars for employees of West Virginia Department of Health & Human Resources Child Protective Services. According to the West Virginia Department of Health and Human Services, there are currently 548 employees that have Child Protective Services in their official job classification. Based upon this information, there would be a reduction of less than $800,000 per year, beginning in FY2022, to the General Revenue Fund.
Additional administrative costs to the Tax Department would be $55,000 in FY2022 and $40,000 in subsequent years
Memorandum
The stated purpose of this bill is to provide a personal income tax credit of $1,500 for employees of the West Virginia Department of Health & Human Resources Child Protection Services. The bill authorizes rule making.
The bill provides a “bare bones” description of the credit (criteria, amount, rulemaking authorization), leaving the Tax Commissioner to come up with all the details (i.e., reporting filing and application of claims for the tax credit) via rules.
The bill’s title’s use of the plural “credits” implies that a new section (i.e., §11-21-24a) addresses more than one type of credit.
The bill is silent with regard to whether the credit may be carried forward or back, or whether it is forfeited if not used in the year that it is earned. The bill is silent regarding whether the credit is refundable. The bill is also silent regarding whether the credit is available for to anyone who is an employee of the West Virginia Department of Health and Human Services Child Protective Services at any time during the tax year or whether the taxpayer must meet the minimum length of service.
The bill authorizes the Tax Commissioner to provide rules for reporting, filing, and application of claims for the tax credit “in a manner which conforms to the rules for tax liability otherwise due.” The language is vague as what is meant by “rules for tax liability otherwise due”.
This credit has a number of constitutional concerns but also qualifies thousands of federal employees for a similar credit due to the recent SCOTUS decision in Dawson v. Steager.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov