FISCAL NOTE

Date Requested: February 06, 2018
Time Requested: 02:30 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2331 Introduced SB489
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 create the West Virginia Volunteer First Responder Act of 2018. The bill increases the death benefit for survivors of firefighters, EMS, or law-enforcement providers killed in the performance of his or her duties and authorizes a tax credit for certain volunteers. According to our interpretation, the revenue loss associated with the tax credit would be up to $10 million beginning in FY2020 if all qualified volunteers were involved in at least 55 percent of the fire company’s or emergency medical service’s activities. The tax credit would range between $200 and $1,000 per person based on participation rates. Additional administrative costs incurred by the State Tax Department would be $46,000 in FY2019 and $35,000 in subsequent 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 0 35,000
Personal Services 0 0 35,000
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):


According to our interpretation, the revenue loss associated with the tax credit would be up to $10 million beginning in FY2020 if all qualified volunteers were involved in at least 55 percent of the fire company’s or emergency medical service’s activities. The tax credit would range between $200 and $1,000 per person based on participation rates. Additional administrative costs incurred by the State Tax Department would be $46,000 in FY2019 and $35,000 in subsequent years.



Memorandum


The stated purpose of this bill is to create the West Virginia Volunteer First Responder Act of 2018. The bill increases the death benefit for survivors of firefighters, EMS, or law-enforcement providers killed in the performance of his or her duties and authorizes a tax credit for certain volunteers. The death benefit portion of this bill accomplishes its purposes; the credit portion would be difficult for the Tax Department to administer and could result in future litigation. The term “volunteer fire responder” is vague. Subdivision (2) discusses activities that would qualify, but this subdivision does not directly relate to subdivision (1), since the word “activities” is not used in subdivision (1). There are two subsection (c)’s. The first subsection (c) sets forth a vague schedule of how much credit can be claimed based upon percentage of involvement. The second subsection (c) states that certification of activity level of participation shall be by sworn statement by the chief officer and witnessed by a notary. No record-keeping requirements are set forth, and it would appear burdensome for firehouses to maintain records of this nature.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov