FISCAL NOTE
Date Requested: February 09, 2017
Time Requested: 09:01 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1022 |
Introduced |
SB13 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to change the qualifier for low income to three hundred percent or less of the federal poverty guideline from one hundred and fifty percent or less of the federal poverty guideline for a senior citizens’ homestead tax credit.
As written, this bill, would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 300 percent of the federal poverty guideline based upon family size. Currently, the eligibility criterion is a Federal Adjusted Gross Income (FAGI) of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation, passage of this bill would result in an initial annual reduction in the General Revenue Fund of roughly $8 million to $10 million beginning in FY2019. The number of senior citizens in West Virginia is expected to continue to grow. The annual reduction in General Revenue Fund collections would grow with the increase in number of senior citizens.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be roughly $12,000 in FY2019 and $10,000 for each year thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
10,000 |
| Personal Services |
0 |
0 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-10,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill, would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 300 percent of the federal poverty guideline based upon family size. Currently, the eligibility criterion is a Federal Adjusted Gross Income (FAGI) of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation, passage of this bill would result in an initial annual reduction in the General Revenue Fund of roughly $8 million to $10 million beginning in FY2019. The number of senior citizens in West Virginia is expected to continue to grow. The annual reduction in General Revenue Fund collections would grow with the increase in number of senior citizens.
Additional administrative costs to the State Tax Department attributable to passage of the bill would be roughly $12,000 in FY2019 and $10,000 for each year thereafter.
Memorandum
The stated purpose of this bill is to change the qualifier for low income to three hundred percent or less of the federal poverty guideline from one hundred and fifty percent or less of the federal poverty guideline for a senior citizens’ homestead tax credit.
The title of the proposed bill fails to mention that the bill changes a definition. Further, the title states that the bill changes “the qualifier for low income;” “qualifier” may not be the best term for this change.
The proposed bill fails to mention that the bill has an internal effective date, and does not clarify that this bill changes the tax credit against the Personal Income Tax.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov