FISCAL NOTE
Date Requested: February 10, 2021
Time Requested: 04:30 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1326 |
Introduced |
HB2146 |
|
|---|
| CBD Subject: |
|
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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 $1,000 per child tax credit for taxpayers who have foster children in their care.
The proposed bill would allow the taxpayer to take a refundable tax credit of $1,000 per foster child in their care. Only one taxpayer per household, the taxpayer with the highest AGI, may take the credit. Taxpayers filing married filing jointly shall be considered as one individual. The foster child must be in the care of the taxpayer for six months and eighteen consecutive days within a calendar month is considered a month. The estimated revenue loss with this Personal Income Tax credit would be estimated at $5.7 million for FY2023 and all subsequent years.
Additional administrative costs to the State Tax Department would be $56,000 for FY2023 and $45,000 for subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
45,000 |
| Personal Services |
0 |
0 |
45,000 |
| 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 |
-5,700,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would allow the taxpayer to take a refundable tax credit of $1,000 per foster child in their care. Only one taxpayer per household, the taxpayer with the highest AGI, may take the credit. Taxpayers filing married filing jointly shall be considered as one individual. The foster child must be in the care of the taxpayer for six months and eighteen consecutive days within a calendar month is considered a month. The estimated revenue loss with this Personal Income Tax credit would be estimated at $5.7 million for FY2023 and all subsequent years.
Additional administrative costs to the State Tax Department would be $56,000 for FY2023 and $45,000 for subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov