Date Requested:February 16, 2005
Time Requested:05:02 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R343 Intro HB2415
CBD Subject: Family Literacy Initiative Tax Check Off
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Fund

Fiscal Note Summary

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

    The stated purpose of this bill is to provide for a voluntary check-off on state personal income tax return forms for grants to schools and public libraries for family literacy programs. The program would be administered through the Department of Education. The checkoff would be on the returns for tax years 2005 to 2010. The bill requires the Department of Tax and Revenue to put the check-off on the return and to report the total amount contributed to the State Treasurer by July 1 of each year.
    
    According to our interpretation, passage of this bill would result in the creation of a voluntary check-off line on state income tax returns for taxpayers who wish to contribute to “West Virginia Family Literacy Initiative Checkoff Fund”. The new check-off may result in the voluntary contribution of a modest amount of funds for this fund. Passage of this bill would have no effect on General Revenue Fund collections.
    
    Passage of this bill would result in no additional 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 0 0
3. Explanation of above estimates (including long-range effect):
    According to our interpretation, passage of this bill would result in the creation of a voluntary check-off line on state income tax returns for taxpayers who wish to contribute to “West Virginia Family Literacy Initiative Checkoff Fund”. The new check-off may result in the voluntary contribution of a modest amount of funds for this fund. Passage of this bill would have no effect on General Revenue Fund collections.
    
    Passage of this bill would result in no additional administrative costs to the Tax Department.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The bill is unclear to what extent the check-off would be applicable to tax year 2010. The section sunsets the check-off for returns filed on and after July 1, 2010, and returns for 2010 would typically be filed in 2011.