FISCAL NOTE
Date Requested: March 07, 2025
Time Requested: 01:42 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3590 |
Introduced |
SB666 |
|
|---|
| 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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify the definition of a disabled veteran taxpayer.
Per our interpretation, the bill would expand the definition of “Disabled veteran taxpayer” under the West Virginia Property Tax Adjustment Act to include veterans who meet the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs as a result of a service-related injury suffered since September 11, 2001. The bill has no internal effective date. Therefore, the legislation, if passed, would be effective for taxable years beginning on and after January 1, 2026.
According to available veteran statistics, roughly 1,250 additional disabled veteran homeowners could become eligible for the 100 percent Personal Income Tax credit for real estate taxes paid by “Disabled veteran taxpayers”. According to our interpretation, the bill, if passed, would decrease General Revenue Fund collections by up to $1.4 million beginning in FY2027. The revenue impact of the tax credit could be less because some of these taxpayers may already be eligible for the Homestead Exemption which exempts the first $20,000 of assessed value from Property Tax.
Additional administrative costs incurred by the State Tax Department would be $1,100 in FY2026.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,100 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,100 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-1,400,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Per our interpretation, the bill would expand the definition of “Disabled veteran taxpayer” under the West Virginia Property Tax Adjustment Act to include veterans who meet the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs as a result of a service-related injury suffered since September 11, 2001. The bill has no internal effective date. Therefore, the legislation, if passed, would be effective for taxable years beginning on and after January 1, 2026.
According to available veteran statistics, roughly 1,250 additional disabled veteran homeowners could become eligible for the 100 percent Personal Income Tax credit for real estate taxes paid by “Disabled veteran taxpayers”. According to our interpretation, the bill, if passed, would decrease General Revenue Fund collections by up to $1.4 million beginning in FY2027. The revenue impact of the tax credit could be less because some of these taxpayers may already be eligible for the Homestead Exemption which exempts the first $20,000 of assessed value from Property Tax.
Additional administrative costs incurred by the State Tax Department would be $1,100 in FY2026.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov