FISCAL NOTE
Date Requested: January 26, 2018
Time Requested: 01:13 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1376 |
Introduced |
HB4331 |
|
|---|
| 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 exempt living organ donors to be exempt from all personal income tax in the taxable year in which the human organ transplantation occurs. The bill defines the term human organ.
According to our interpretation, this bill would exempt from Personal Income Tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone marrow for the year that they donate. Passage of this bill would result in an average loss of less than $100,000 per year. However, due to the huge variability in income tax liabilities of individual taxpayers, there could be significant annual swings in the revenue losses depending on the income level of participating individuals.
Additional administrative costs incurred by the State Tax Department would be $15,000 for FY2019 and $10,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
15,000 |
10,000 |
| Personal Services |
0 |
10,000 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-100,000 |
-100,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would exempt from Personal Income Tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone marrow for the year that they donate. Passage of this bill would result in an average loss of less than $100,000 per year. However, due to the huge variability in income tax liabilities of individual taxpayers, there could be significant annual swings in the revenue losses depending on the income level of participating individuals.
Additional administrative costs incurred by the State Tax Department would be $15,000 for FY2019 and $10,000 in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov