Date Requested:March 01, 2005
Time Requested:01:48 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R492 Intro SB410
CBD Subject: WV Give Act
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
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 -26,700,000 -26,700,000
3. 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
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    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.