FISCAL NOTE

Date Requested: January 16, 2020
Time Requested: 12:04 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1569 Introduced HB4373
CBD Subject:


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 establish a $1,000 tax credit against personal income tax for families who suffer the loss of a stillborn child. The proposed bill would allow a family to take a one-time credit equal to $1,000 against the tax imposed. The revenue loss from this Personal Income Tax credit would be between $50,000 and $100,000 for FY2022 and subsequent years. Additional administrative costs to the State Tax Department would be $15,000 in FY2022 and $5,000 in 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 5,000
Personal Services 0 0 5,000
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 proposed bill would allow a family to take a one-time credit equal to $1,000 against the tax imposed. The revenue loss from this Personal Income Tax credit would be between $50,000 and $100,000 for FY2022 and subsequent years. Additional administrative costs to the State Tax Department would be $15,000 in FY2022 and $5,000 in subsequent fiscal years.



Memorandum


The stated purpose of this bill is to establish a $1,000 tax credit against personal income tax for families who suffer the loss of a stillborn child. There is no internal effective date, if enacted this bill would then first apply on the 2021 tax return. The bill does not state who may claim the credit other than “a family”. This leaves open the question of who is able to claim the credit if filing separately. The bill does not state whether the credit must be claimed in the taxable year of the stillbirth or for some other time, whether the credit is refundable, or whether any credit residue can be carried over. The bill does not require the claimant to have a certificate of stillbirth as available under W.Va. Code §16-5-21a, “Noah’s Law: certificate of birth for a stillbirth; and contents of certificate.” Without the certificate, tax administration may be difficult.



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