Date Requested:February 23, 2005
Time Requested:02:50 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R872 Intro HB2610
CBD Subject: Low Income Exclusion Increased
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 increase the low-income exclusion for personal income tax.
    
    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $24.7 million in Fiscal Year 2005-2006 and by roughly $26.9 million per year, thereafter. The bill would increase the low-income earned-income exclusion threshold from $10,000 to $18,000 for single, joint and head of household returns and from $5,000 to $9,000 for married-filing-separate returns.
    
    There would be no additional administrative costs to the Tax Department associated with 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 -24,700,000 -26,900,000
3. Explanation of above estimates (including long-range effect):
    This bill would increase the low-income earned-income exclusion threshold from $10,000 to $18,000 for single, joint and head of household returns and from $5,000 to $9,000 for married-filing-separate returns. The change would benefit up to 118,000 taxpayers at a cost of roughly $26.9 million per year to the General Revenue Fund.
    
    There would be no additional administrative costs to the Tax Department associated with this bill.


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