FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:40 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1971 |
Introduced |
HB2292 |
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| CBD Subject: |
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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 reinstate a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
For Tax Years which have been approved by the Legislature, retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) are eligible to receive a personal income tax adjustment equal to the amount of pension income not received. This bill seeks to extend the decreasing modification for Tax Year 2023 and Tax Year 2024. Current W.Va. Code §11-21-12d, which was amended during the 2019 legislative session, provides that the adjustment shall be effective beginning on January 1, 2020, and shall terminate for taxable years on and after January 1, 2023. Based on our interpretation, passage of this bill would result in a loss of $230,000 for FY2024 and FY2025. Unless additional businesses which offered defined benefit retirement plans are added to the Pension Benefit Guaranty Corporation Program, we anticipate that the cost of this modification will decline over time.
There would be no additional administrative costs.
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 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-230,000 |
-230,000 |
Explanation of above estimates (including long-range effect):
For Tax Years which have been approved by the Legislature, retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) are eligible to receive a personal income tax adjustment equal to the amount of pension income not received. This bill seeks to extend the decreasing modification for Tax Year 2023 and Tax Year 2024. Current W.Va. Code §11-21-12d, which was amended during the 2019 legislative session, provides that the adjustment shall be effective beginning on January 1, 2020, and shall terminate for taxable years on and after January 1, 2023. Based on our interpretation, passage of this bill would result in a loss of $230,000 for FY2024 and FY2025. Unless additional businesses which offered defined benefit retirement plans are added to the Pension Benefit Guaranty Corporation Program, we anticipate that the cost of this modification will decline over time.
There would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov