FISCAL NOTE
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
| 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 |
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