FISCAL NOTE

Date Requested: January 11, 2023
Time Requested: 10:07 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1148 Introduced HB2450
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 provide a tax credit for 50% of the cost of a lifetime hunting, trapping and fishing license for veterans who have been honorably discharged from the armed services and who are certified by the Veterans Administration as not less than 50% totally disabled. According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license and may not exceed 50 percent of the adult fee for a lifetime license. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $120,000 a year beginning in FY2025. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2024. Additional administrative costs to the State Tax Department would be $32,500 for FY2024 and $5,000 for subsequent fiscal years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2023
Increase/Decrease
(use"-")
2024
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 32,500 5,000
Personal Services 0 22,500 5,000
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 -120,000


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


According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license and may not exceed 50 percent of the adult fee for a lifetime license. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $120,000 a year beginning in FY2025. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2024. Additional administrative costs to the State Tax Department would be $32,500 for FY2024 and $5,000 for subsequent fiscal years.



Memorandum






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