Date Requested:February 16, 2005
Time Requested:05:01 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R96 Intro HB2405
CBD Subject: Income Exemption for Volunteer Fireman
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

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.

Fiscal Note Detail
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.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us