FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 01:11 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1605 |
Introduced |
SB264 |
|
|---|
| 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 a tax credit for individuals who successfully complete a firearms safety course.
According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for individuals who successfully complete a firearms safety course. The credit is effective for tax years beginning January 1, 2020, and the maximum amount of credit per individual is $250 per person. The tax credit is not subject to carryback and unused credit is forfeited. The amount of credit is not based on costs incurred in enrolling and completing a firearms safety course. Therefore, the amount of credit claimed up to the maximum amount would only be limited by the taxpayer’s tax liability. As written, a taxpayer and each person in their household could earn and claim the credit in successive years. Based on our interpretation, the passage of the proposed legislation would create a loss in General Revenue collections of $1.6 million in FY2021 and in subsequent fiscal years.
Additional administrative cost incurred by the State Tax Department are expected to be $51,000 in FY2021 and $40,000 in subsequent years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
51,000 |
40,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,000 |
0 |
| Other |
0 |
10,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-1,600,000 |
-1,600,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for individuals who successfully complete a firearms safety course. The credit is effective for tax years beginning January 1, 2020, and the maximum amount of credit per individual is $250 per person. The tax credit is not subject to carryback and unused credit is forfeited. The amount of credit is not based on costs incurred in enrolling and completing a firearms safety course. Therefore, the amount of credit claimed up to the maximum amount would only be limited by the taxpayer’s tax liability. As written, a taxpayer and each person in their household could earn and claim the credit in successive years. Based on our interpretation, the passage of the proposed legislation would create a loss in General Revenue collections of $1.6 million in FY2021 and in subsequent fiscal years.
Additional administrative cost incurred by the State Tax Department are expected to be $51,000 in FY2021 and $40,000 in subsequent years.
Memorandum
The stated purpose of this bill is to create a tax credit for individuals who successfully complete a firearms safety course.
The bill purports to authorize a credit of up to $250 for a “qualified individual” who enrolls in and successfully completes a firearm safety course. “Qualified individual” is not defined. The amount of credit is not linked to the cost of the course.
The bill does not specify that only one credit is allowed per taxpayer or per taxpayer’s household. As written, a taxpayer and other household members may take a firearm safety course each year to receive the credit. One household could receive several credits over several years.
The definition of “Firearms safety course” is broadly defined. The four subsections of the definition are not connected by “or”, which could lead to confusion regarding whether all four subsections must be met. The broadest part of the “firearms safety course” definition includes public or private organizations which use instructors certified by the institution. This broad language could open the door for any radical group training its members in firearm use.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov