FISCAL NOTE
Date Requested: February 10, 2021
Time Requested: 04:11 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1273 |
Introduced |
HB2046 |
|
|---|
| 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 propose of this bill is to create three refundable tax credits for volunteer fire fighters, emergency medical responders, emergency medical services practitioners, and ambulance drivers for qualifying service, training expenses, and mileage expenses.
The proposed bill would create three refundable Personal Income Tax credits. The first credit is referred to as the Emergency Service Tax Credit, up to $300 for one to five years of service and $600 if the taxpayer has five or more years of service. Any amount of the credit over taxpayer’s tax liability will be refunded to the taxpayer.
The Emergency Responder Education and Training Tax Credit would allow the taxpayers $20 per hour of coursework or training. The maximum credit allowed is 25 hours or $500. Any amount of the credit over taxpayer’s tax liability will be refunded to the taxpayer.
The final credit is the Emergency Responder Mileage and Equipment Tax Credit. According to the language in the proposed bill, the credit is against the taxes in the amount equal to the sum of the taxpayer’s mileage for the taxable year for which the claim is made and expenses incurred in that year. The credit maximum is $400 per taxable year. Any credit over the tax liability is refundable according to (6)(f).
According to our interpretation, passage of this bill would result in reduction in the General Revenue Fund of roughly $13.0 million per year beginning in FY2022.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be $71,000 in FY2022 and $45,000 in subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
71,000 |
45,000 |
| Personal Services |
0 |
45,000 |
45,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,000 |
0 |
| Other |
0 |
25,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-13,000,000 |
-13,000,000 |
Explanation of above estimates (including long-range effect):
The proposed bill would create three refundable Personal Income Tax credits. The first credit is referred to as the Emergency Service Tax Credit, up to $300 for one to five years of service and $600 if the taxpayer has five or more years of service. Any amount of the credit over taxpayer’s tax liability will be refunded to the taxpayer.
The Emergency Responder Education and Training Tax Credit would allow the taxpayers $20 per hour of coursework or training. The maximum credit allowed is 25 hours or $500. Any amount of the credit over taxpayer’s tax liability will be refunded to the taxpayer.
The final credit is the Emergency Responder Mileage and Equipment Tax Credit. According to the language in the proposed bill, the credit is against the taxes in the amount equal to the sum of the taxpayer’s mileage for the taxable year for which the claim is made and expenses incurred in that year. The credit maximum is $400 per taxable year. Any credit over the tax liability is refundable according to (6)(f).
According to our interpretation, passage of this bill would result in reduction in the General Revenue Fund of roughly $13.0 million per year beginning in FY2022.
Memorandum
The stated purpose of this bill is to create three refundable credits for volunteer fire fighters, emergency medical responders, emergency medical services practitioners and ambulance drivers.
The proposed bill has some issues with wording. Section §11-21-27 Emergency Responder Mileage and Equipment Tax Credit, subsection (c) states: Except as provided in subsection (d) of this section, there is allowed to every eligible taxpayer a credit against the tax under this article in the amount equal to the sum of the taxpayer’s mileage for the taxable year for which the claim is made and the expenses incurred in that year. “Against the taxes” in this subsection is unclear due to subsection (f) stating that the credit in excess of taxes due is refundable. Subsection (c) is worded as if the credit would not be refundable.
The proposed bill also fails to fully define emergency medical responder. For each of the three credits the definition for Emergency responder is stated as an individual who serves in this state as a volunteer emergency medical responder, a volunteer emergency responder, a volunteer fire fighter, a volunteer emergency medical services practitioner; or a volunteer ambulance driver. The definition of volunteer emergency medical services practitioner is also not clearly defined.
The bill title does not include an effective date. The bill title also fails to state that the three proposed credits are against the taxpayer’s personal income tax return.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov