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 create the “West Virginians Give Act" authorizing West Virginia resident taxpayers to make deductions for charitable gifts on their personal income tax returns subject to a maximum deductible of $4,000.
    
    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $26.7 million per year beginning in Fiscal Year 2006-2007. This bill would create a decreasing modification to federal adjusted gross income for charitable contributions effective for taxable years beginning after December 31, 2005.
    
    If all returns with modifications for charitable contributions are accepted as filed, there would be no additional administrative costs to the Tax Department.



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 -26,700,000 -26,700,000


Explanation of above estimates (including long-range effect):


    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $26.7 million per year beginning in Fiscal Year 2006-2007. This bill would create a decreasing modification to federal adjusted gross income for charitable contributions effective for taxable years beginning after December 31, 2005.
    
    If all returns with modifications for charitable contributions are accepted as filed, there would be no additional administrative costs to the Tax Department.



Memorandum


    The stated purpose of this bill is to create the “West Virginians Give Act" authorizing West Virginia resident taxpayers to make deductions for charitable gifts on their personal income tax returns subject to a maximum deductible of $4,000.
    
    This bill, which amends W. Va. Code § 11-21-15, would not be applicable to nonresidents. That could be considered to be unconstitutionally discriminatory.



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