FISCAL NOTE
Date Requested: January 24, 2019 Time Requested: 01:32 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2151 |
Introduced |
HB2655 |
|
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 increase the modification reducing income for personal income tax purposes for retired state teachers and retired state employees.
The bill, as written, increases the decreasing modification from $2,000 to $22,000 for benefits received under PERS and the Teachers Retirement System beginning with Tax Year 2020. In addition, based on Davis v. Michigan decision, the decreasing modification for federal retirees would be increased to $22,000. Passage of this bill would reduce General Revenue Fund collections by roughly $95.6 million in FY2021. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs incurred by the State Tax Department would be $51,000 in FY2021 and $40,000 in each of the fiscal years thereafter.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
40,000 |
Personal Services |
0 |
0 |
40,000 |
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 |
0 |
Explanation of above estimates (including long-range effect):
The bill, as written, increases the decreasing modification from $2,000 to $22,000 for benefits received under PERS and the Teachers Retirement System beginning with Tax Year 2020. In addition, based on Davis v. Michigan decision, the decreasing modification for federal retirees would be increased to $22,000. Passage of this bill would reduce General Revenue Fund collections by roughly $95.6 million in FY2021. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs incurred by the State Tax Department would be $51,000 in FY2021 and $40,000 in each of the fiscal years thereafter.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov