FISCAL NOTE
Date Requested: February 11, 2020
Time Requested: 12:30 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2957 |
Introduced |
HB4931 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
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 the bill is to provide a $5,000 tax credit for families who have foster children in their care.
The proposed bill would allow the taxpayer to take a tax credit of $5,000 for each year the child is in the foster care family. The revenue loss associated with this proposal cannot be readily determined. It is unclear whether the credit is $5,000 per tax return or $5,000 per child for each child in the foster care family. In addition, the bill does not indicate if the credit is refundable. However, the revenue loss associated with this proposed tax credit would be significant.
Additional administrative costs to the State Tax Department would be $51,000 for FY2022 and $40,000 for subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
40,000 |
| Personal Services |
0 |
0 |
0 |
| 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):
The proposed bill would allow the taxpayer to take a tax credit of $5,000 for each year the child is in the foster care family. The revenue loss associated with this proposal cannot be readily determined. It is unclear whether the credit is $5,000 per tax return or $5,000 per child for each child in the foster care family. In addition, the bill does not indicate if the credit is refundable. However, the revenue loss associated with this proposed tax credit would be significant. There are an average of 5,600 children in foster care within the state; this excluded children that are residing in a group home or facility.
Additional administrative costs to the State Tax Department would be $51,000 for FY2022 and $40,000 for subsequent years.
Memorandum
The stated purpose of the bill is to provide $5,000 tax credit for families who have foster children in their care.
It is unclear what constitutes a year for purpose of this credit. Carry forward and carry backs are not addressed for instances when the credit exceeds the family’s tax liability, and the bill does not state if the tax credit is refundable. It is also unclear whether a foster family with more than one child in its care may claim this credit for multiple children.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov