FISCAL NOTE
Date Requested: March 16, 2021
Time Requested: 11:51 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3331 |
Introduced |
HB3270 |
|
|---|
| 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 exempt the first $35,000 of retirement income from taxation for individuals 60 or older.
This bill would allow for state residents who are aged 60 years and older to exempt the first $35,000 of retirement income, from any source, from their adjusted gross income for tax purposes. This decreasing modification would be effective for taxable years beginning after December 31, 2020. According to the most recent tax return data, this exemption would result in a revenue loss of $184.0 million per year beginning in FY2022.
Additional administrative costs to the State Tax Department would be $5,000 in FY2022.
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 |
5,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-184,000,000 |
-184,000,000 |
Explanation of above estimates (including long-range effect):
This bill would allow for state residents who are aged 60 years and older to exempt the first $35,000 of retirement income, from any source, from their adjusted gross income for tax purposes. This decreasing modification would be effective for taxable years beginning after December 31, 2020. According to the most recent tax return data, this exemption would result in a revenue loss of $184.0 million per year beginning in FY2022.
Additional administrative costs to the State Tax Department would be $5,000 in FY2022.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov