FISCAL NOTE
Date Requested: February 13, 2017 Time Requested: 01:41 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1353 |
Introduced |
|
|
CBD Subject: |
Senior Citizens, Taxation |
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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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled, for the next three years.
The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in FY2018. The modification would increase to $12,000 for FY2018, to $16,000 for FY2019, and to $20,000 for FY2020 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows:
Amount of
Fiscal Decreasing Revenue
Year Modification Loss
FY2018 $12,000 $31.3 million
FY2019 $16,000 $59.5 million
FY2020 $20,000 $82.6 million
The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional costs to the State Tax Department would be minimal.
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 |
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 |
-31,300,000 |
0 |
Explanation of above estimates (including long-range effect):
The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in FY2018. The modification would increase to $12,000 for FY2018, to $16,000 for FY2019, and to $20,000 for FY2020 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows:
Amount of
Fiscal Decreasing Revenue
Year Modification Loss
FY2018 $12,000 $31.3 million
FY2019 $16,000 $59.5 million
FY2020 $20,000 $82.6 million
The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional costs to the State Tax Department would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov