FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 07:16 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1356 |
Introduced |
SB75 |
|
|---|
| CBD Subject: |
Taxation; Public Safety |
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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 that all first responders, including those retiring to West Virginia, be exempt from taxes
According to our interpretation, the bill expands the decreasing modification for pension income derived from certain West Virginia police, fire and deputy sheriff’s retirement funds received to include those receiving benefits from any police, fire or deputy sheriff retirement plan from their respective states who live in West Virginia. The wording of the bill would allow any first responder to claim a decreasing modification regardless of the retirement fund they received benefits, including first responders who receive benefits from the Public Employee Retirement System. We are unable to determine the revenue loss from this proposal due to lack of data on the number of retirees with this type of retirement income who live in West Virginia. In addition, the wording of the bill language effectively makes the changes retroactive to the 1980 tax year, which will probably result in many amended returns from taxpayers who will benefit from the change.
Additional administrative would be $109,800 in FY2026 and $90,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
109,800 |
90,000 |
90,000 |
| Personal Services |
90,000 |
90,000 |
90,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
3,300 |
0 |
0 |
| Other |
16,500 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill expands the decreasing modification for pension income derived from certain West Virginia police, fire and deputy sheriff’s retirement funds received to include those receiving benefits from any police, fire or deputy sheriff retirement plan from their respective states who live in West Virginia. The wording of the bill would allow any first responder to claim a decreasing modification regardless of the retirement fund they received benefits, including first responders who receive benefits from the Public Employee Retirement System. We are unable to determine the revenue loss from this proposal due to lack of data on the number of retirees with this type of retirement income who live in West Virginia. In addition, the wording of the bill language effectively makes the changes retroactive to the 1980 tax year, which will probably result in many amended returns from taxpayers who will benefit from the change.
Additional administrative would be $109,800 in FY2026 and $90,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to provide that all first responders, including those retiring to West Virginia, be exempt from taxes
This bill attempts to expand the modification by reducing federal adjusted gross income from pension income derived from certain West Virginia retirement funds. The expanded modification is intended to include “first responder” retirees receiving retirement income from their respective states who move to West Virginia. Removing “West Virginia” from the references to retirement funds essentially shifts the focus from the specific retirement funds to the identity of each taxpayer as a first responder. Currently, a first responder who receives benefits from the Public Employee Retirement System (PERS) is not entitled to the §11-21-12(c)(6) reducing modification. The bill opens the door to any and all first responders claiming the reducing modification, regardless of the retirement fund they receive benefits from.
The substituted language retains the subdivision’s opening applicability language – “Retirement income received in the form of pensions and annuities after December 31, 1979 . . .” – effectively making the changes retroactive to the 1980 tax year, which will probably result in many amended returns from taxpayers who will benefit from the change
The bill title uses the term “first responders” which is not used in the bill. This may be a title defect.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov