Date Requested:February 21, 2005
Time Requested:02:18 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R952 Intro HB2539
CBD Subject: WV Adjusted Gross Income of Resident Ind
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    The stated purpose of this bill is to exempt any income derived from military retirement as gross income for purposes of calculating a person’s personal income tax obligation to West Virginia for such persons who are 62 years old or older.
    
    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $0.2 million per year beginning in Fiscal Year 2007.
    
    There would be no additional administrative costs to the Tax Department associated with passage of this bill.
    

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 -200,000
3. Explanation of above estimates (including long-range effect):
    This bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits for persons who are 62 years old or older. The provisions of the bill apply to military retirement income received after December 31, 2005. Thus, the first reduction in State revenue will likely occur in Fiscal year 2007.
    
    Passage of this bill would result in a decrease in General Revenue Fund collections of roughly $0.2 million per year beginning in Fiscal Year 2007.
    
    There would be no additional administrative costs to the Tax Department associated with passage of this bill.


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