FISCAL NOTE

Date Requested: February 19, 2021
Time Requested: 11:28 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2170 Introduced HB2623
CBD Subject:


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 tax credit to encourage new teachers to remain in the state and teach for five years after graduation. According to our interpretation, passage of this bill would provide a Personal Income Tax credit of up to $1,200 for any new teacher who remains in West Virginia and works as a teacher for five years. We are unable to estimate the revenue loss associated with this bill. It is unclear when the credit is to be taken, who qualifies for the credit or the amount of credit allowed. The potential revenue loss could be substantial. Additional administrative costs would be $35,000 in FY2023 and $10,000 for subsequent fiscal 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 10,000
Personal Services 0 0 10,000
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):


According to our interpretation, passage of this bill would provide a Personal Income Tax credit of up to $1,200 for any new teacher who remains in West Virginia and works as a teacher for five years. We are unable to estimate the revenue loss associated with this bill. It is unclear when the credit is to be taken, who qualifies for the credit or the amount of credit allowed. The potential revenue loss could be substantial. Additional administrative costs would be $35,000 in FY2023 and $10,000 for subsequent fiscal years.



Memorandum


The stated purpose of this bill is to provide a tax credit to encourage new teachers to remain in the state and teach for five years after graduation. The bill is vague. It is unclear whether all recipients get $1,200 or if the amount is dependent on the Personal Income Tax liability. The bill does not define “teacher”, “new teacher”, “remains in West Virginia” and “after graduation”. It is unclear whether a new teacher who lives in West Virginia but works in a border state qualifies for the credit. The bill is silent as to whether the teacher must be employed by a public school, private school or any other school or whether employment must be full-time. The bill is also silent as to when the credit may be taken—at the end of five years or pro rata over the five years. The bill also does not indicate whether the credit is refundable or if the credit is $1,200 per year or a total of $1,200.



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