FISCAL NOTE

Date Requested: January 22, 2020
Time Requested: 02:24 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2021 Introduced SB319
CBD Subject: Actions, Suits and Liens


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to provide that moneys in the West Virginia Emergency Medical Services Retirement Fund are exempt from any state or municipal tax, are not subject to execution, garnishment, attachment, or any other process whatsoever with the exception that the benefits or contributions under the system shall be subject to “qualified domestic relations orders” and are generally unassignable. The bill puts EMS members on equal retirement fund footing as firefighters, deputy sheriffs and other law enforcement personnel. This bill exempts from all state taxes both the funds and the proceeds of the emergency medical services retirement fund. Under the provisions of this bill, pension benefits from the West Virginia Emergency Medical Services Retirement Fund would be exempt from Personal Income Tax. The exemption of these pension benefits would result in a loss of $160,000 in State revenues beginning FY2022. Retirees from this Fund would also be eligible for the $8,000 modification for senior citizens or persons who are totally and personally disabled if they had income in addition this pension income. Therefore, passage of this bill as written would effectively provide emergency medical services retirees over age 65 with a greater tax preference than retired firefighters, deputy sheriffs military and other law enforcement personal. Additional administrative costs would $20,000 for FY 2022 and all subsequent fiscal 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 0 20,000
Personal Services 0 0 20,000
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 -160,000


Explanation of above estimates (including long-range effect):


This bill exempts from all state taxes both the funds and the proceeds of the emergency medical services retirement fund. Under the provisions of this bill, pension benefits from the West Virginia Emergency Medical Services Retirement Fund would be exempt from Personal Income Tax. The exemption of these pension benefits would result in a loss of $160,000 in State revenues beginning FY2022. Retirees from this Fund would also be eligible for the $8,000 modification for senior citizens or persons who are totally and personally disabled if they had income in addition this pension income. Therefore, passage of this bill as written would effectively provide emergency medical services retirees over age 65 with a greater tax preference than retired firefighters, deputy sheriffs military and other law enforcement personal. Additional administrative costs would $20,000 for FY 2022 and all subsequent fiscal years.



Memorandum


The stated purpose of this bill is to provide that moneys in the West Virginia Emergency Medical Services Retirement Fund are exempt from any state or municipal tax, are not subject to execution, garnishment, attachment, or any other process whatsoever with the exception that the benefits or contributions under the system shall be subject to “qualified domestic relations orders” and are generally unassignable. The bill puts EMS members on equal retirement fund footing as firefighters, deputy sheriffs and other law enforcement personnel. Preferential treatment for retirees from the West Virginia Emergency Medical Services Retirement Fund relative to federal civil service retirees would conflict with the U.S. Supreme Court ruling in Davis v. Michigan.



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