FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 07:55 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1960 |
Introduced |
SB194 |
|
|---|
| 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 clarify the definition of a disabled veteran.
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, 2027.
According to available veteran statistics, roughly 1,400 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 $1.6 million beginning in FY2028. 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 Division would be $1,100 in FY2027.
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 |
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 |
-1,600,000 |
Explanation of above estimates (including long-range effect):
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, 2027.
According to available veteran statistics, roughly 1,400 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 $1.6 million beginning in FY2028. 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 Division would be $1,100 in FY2027.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov