FISCAL NOTE
Date Requested: March 10, 2017
Time Requested: 01:28 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2858 |
Introduced |
HB2929 |
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| CBD Subject: |
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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 continue providing 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.
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) received a personal income tax adjustment equal to the amount of pension income not received through Tax Year 2014. This bill would reinstate the allowance of that decreasing modification beginning in TY2017 and terminating after the end of Tax Year 2020. Passage of the proposed legislation would result in a potential loss from Tax Year 2017 returns of approximately $400,000 occurring in FY2018. Approximately $400,000 in annual revenue losses are expected for the remaining years until termination.
Additional administrative costs to the State Tax Department would be $14,000 in FY2018 and $5,000 in subsequent years. No additional administrative costs are expected for the remainder of FY2017.
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 |
14,000 |
5,000 |
| Personal Services |
0 |
5,000 |
5,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
9,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-400,000 |
-400,000 |
Explanation of above estimates (including long-range effect):
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) received a personal income tax adjustment equal to the amount of pension income not received through Tax Year 2014. This bill would reinstate the allowance of that decreasing modification beginning in TY2017 and terminating after the end of Tax Year 2020. Passage of the proposed legislation would result in a potential loss from Tax Year 2017 returns of approximately $400,000 occurring in FY2018. Approximately $400,000 in annual revenue losses are expected for the remaining years until termination.
Additional administrative costs to the State Tax Department would be $14,000 in FY2018 and $5,000 in subsequent years. No additional administrative costs are expected for the remainder of FY2017.
Memorandum
The stated purpose of this bill is to continue providing 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.
The proposed bill seeks to reinstate a Personal Income Tax modification which has expired. The use of the word ‘adjustment’ in the proposed new subsection(b) is inconsistent with the standard use of “modification” throughout the Code. Also, additional wording may be necessary to clarify that the new subsection(b) is not in conflict with the earlier termination date in subsection(a).
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov