FISCAL NOTE
Date Requested: March 12, 2025
Time Requested: 08:42 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2256 |
Introduced |
HB2671 |
|
|---|
| 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 create an income tax exemption for memberships to gyms in West Virginia and to set the exemption at $60 per month with a total of $720 per year.
According to our interpretation, this bill would create a decreasing modification for gym memberships. The average gym membership in West Virginia costs $47 per month or $568 per year. Nationally, 20 percent of the U.S. population have gym memberships. Passage of this bill would reduce General Revenue Fund collections by nearly $3.7 million per year in FY2027 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $29,150 in FY2026 and $11,000 per year in FY2027 and thereafter.
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 |
29,150 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-37,000,000 |
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.
According to our interpretation, this bill would create a decreasing modification for gym memberships. The average gym membership in West Virginia costs $47 per month or $568 per year. Nationally, 20 percent of the U.S. population have gym memberships. Passage of this bill would reduce General Revenue Fund collections by nearly $3.7 million per year in FY2027 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $29,150 in FY2026 and $11,000 per year in FY2027 and thereafter.
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.
The stated purpose of this bill is to create an income tax exemption for memberships to gyms in West Virginia and to set the exemption at $60 per month with a total of $720 per year.
The language in this bill should be changed to a decreasing modification against federal adjusted gross income rather than a Personal Income Tax exemption. Further, this bill lacks any definition for “gym” or “membership” and does not specify whether the proposed exemption applies per taxpayer or per return.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov