FISCAL NOTE
Date Requested: January 25, 2022
Time Requested: 04:09 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1396 |
Introduced |
HB4385 |
|
|---|
| CBD Subject: |
Professions and Occupations |
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|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to create a tax credit for persons employed as police officers, firefighters, emergency medical service providers, and correctional officers.
This proposed bill would allow for every eligible taxpayer employed as a police officer, firefighter, emergency medical service provider, or correctional officer for the full duration of the tax year a credit against the tax payable of $2,000 per year. The tax credit would be available to qualified federal, state, and local government employees as well as volunteer firefighters who conduct their qualified work activities in West Virginia or elsewhere. The proposed bill would be effective for the tax year beginning after December 1, 2021.
According to our interpretation, passage of this bill would result in reduction of the General Revenue Fund of roughly $46.5 million beginning in FY2023.
Additional administrative costs to the State Tax Department attributable to the passage of this bill would be $66,500 in FY2023 and $45,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
66,500 |
45,000 |
| Personal Services |
0 |
45,000 |
45,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,500 |
0 |
| Other |
0 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-46,500,000 |
-46,500,000 |
Explanation of above estimates (including long-range effect):
This proposed bill would allow for every eligible taxpayer employed as a police officer, firefighter, emergency medical service provider, or correctional officer for the full duration of the tax year a credit against the tax payable of $2,000 per year. The tax credit would be available to qualified federal, state, and local government employees as well as volunteer firefighters who conduct their qualified work activities in West Virginia or elsewhere. The proposed bill would be effective for the tax year beginning after December 1, 2021.
According to our interpretation, passage of this bill would result in reduction of the General Revenue Fund of roughly $46.5 million beginning in FY2023.
Additional administrative costs to the State Tax Department attributable to the passage of this bill would be $66,500 in FY2023 and $45,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to create a tax credit for persons employed as police officers, firefighters, emergency medical service providers, and correctional officers.
The credit is also extended to volunteer firefighters under this article. This is problematic as §11-13JJ-1 et seq. already provides a tax credit for volunteer firefighters. Based on the language of this new article, it appears that a volunteer firefighter could legitimately claim a credit under both articles as such is not prohibited. There are no qualifications set forth for a “volunteer firefighter.”
Some of this bill’s language is vague, and no terms are defined. Does “emergency medical services providers” apply to only EMTs or paramedics or is it meant to encompass emergency room staff as well? Are DNR Police Officers included under “police officers” since they have similar jurisdictional powers as the State Police though they have different primary duties?
The bill makes no distinction between state and federal employment. If such distinction were made, it could violate the holding of Dawson v. Steager. To be allowed under Dawson, all federal police, firefighters, emergency medical service providers, and correctional officers may also be eligible for the tax credit.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov