FISCAL NOTE

Date Requested: March 18, 2021
Time Requested: 09:12 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1137 Introduced SB106
CBD Subject:


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 for a provide for a $5,000 tax credit for service by volunteer firefighters to West Virginia personal income tax liabilities. The proposed bill would allow volunteer firefighters who have been active members of volunteer fire departments for the entire year to receive a tax credit of up to $5,000 a year beginning with tax years ending after December 31, 2021. Current law allows a $1,000 tax credit for volunteer firefighters beginning with tax years ending after December 31, 2022. Based on available information, the revenue loss associated with this bill would be roughly $15.2 million in FY2022 and $7.5 million in FY2023 and subsequent tax years. The credit cannot be carried forward. Additional administrative costs to the State Tax Department would be $32,500 in FY2022 and $22,500 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 32,500 22,500
Personal Services 0 22,500 22,500
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 10,000 0
2. Estimated Total Revenues 0 0 -7,500,000


Explanation of above estimates (including long-range effect):


The proposed bill would allow volunteer firefighters who have been active members of volunteer fire departments for the entire year to receive a tax credit of up to $5,000 a year beginning with tax years ending after December 31, 2021. Current law allows a $1,000 tax credit for volunteer firefighters beginning with tax years ending after December 31, 2022. Based on available information, the revenue loss associated with this bill would be roughly $15.2 million in FY2022 and $7.5 million in FY2023 and subsequent tax years. The credit cannot be carried forward. Additional administrative costs to the State Tax Department would be $32,500 in FY2022 and $22,500 in subsequent years.



Memorandum


The stated purpose of the bill is to provide for a provide for a $5,000 tax credit for service by volunteer firefighters to West Virginia personal income tax liabilities. The bill needs to amend existing code. There is an existing article by the same name. Article 13JJ, Chapter 11 is also the West Virginia Volunteer Firefighter Tax Credit Act. The 2021 bill creates an act by the same name. The two acts are similar except for two major points. The current article, 13JJ, allows a credit of $1,000 per qualified person after December 31, 2022. The 2021 bill allows a $5,000 per qualified person after December 31, 2021.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov