| Date Requested:February 16, 2005 Time Requested:05:01 PM |
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| FUND(S) General Revenue Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| General Fund | |||
Legislation creates:
A New Program | |||
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to allow members of volunteer fire departments who have successfully completed required training and who have two years of service to exempt five hundred dollars from their gross income, for state personal income tax purposes.
Passage of this bill would reduce General Revenue Fund collections by approximately $263,000 per year beginning in Fiscal Year 2006-2007. Absent an internal effective date, the provisions of this bill would become effective for the 2006 tax year. If all returns are accepted as filed, there would be a minimal increase in administrative costs to the Tax Department. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 0 | 0 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 0 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| 2. Estimated Total Revenues | 0 | -263,000 | -263,000 |
|
3. Explanation of above estimates (including long-range effect):
A $500 deduction for qualified volunteer firefighters would cost the State approximately $263,000 per year. According to available State data, over 11,700 volunteers may qualify for this exemption.
If all returns are accepted as filed, there would be a minimal increase in administrative costs to the Tax Department. |