FISCAL NOTE
Date Requested: February 07, 2020 Time Requested: 10:53 AM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3058 |
Introduced |
HB4751 |
|
CBD Subject: |
Professions and Occupations |
---|
|
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 provide a tax credit for dues paid to trade associations.
According to our interpretation, passage of the bill would have the General Revenue Fund pay up to 100 percent of membership dues to trade associations via a 100 percent tax credit of up to a maximum of $10,000 per membership against either State Personal Income Tax or Corporation Net Income Tax.
A data search revealed roughly 213 trade associations in West Virginia with memberships ranging from a few individuals and businesses to over a thousand. A person or corporation could belong to multiple trade associations. The fee to belong to one of these trade organizations can range from $250 to over $10,000. The revenue loss cannot readily be determined due to lack of information on the number of taxpayers who would qualify for the credit and the amount of fees they would pay. However, the revenue loss associated with this proposed credit would be very significant.
Additional administrative costs to the Tax Department would be approximately $100,000 in FY2022 and $80,000 per year in the 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 |
0 |
80,000 |
Personal Services |
0 |
0 |
80,000 |
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):
According to our interpretation, passage of the bill would have the General Revenue Fund pay up to 100 percent of membership dues to trade associations via a 100 percent tax credit of up to a maximum of $10,000 per membership against either State Personal Income Tax or Corporation Net Income Tax.
A data search revealed roughly 213 trade associations in West Virginia with memberships ranging from a few individuals and businesses to over a thousand. A person or corporation could belong to multiple trade associations. The fee to belong to one of these trade organizations can range from $250 to over $10,000. The revenue loss cannot readily be determined due to lack of information on the number of taxpayers who would qualify for the credit and the amount of fees they would pay. However, the revenue loss associated with this proposed credit would be very significant.
Additional administrative costs to the Tax Department would be approximately $100,000 in FY2022 and $80,000 per year in the subsequent years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov