Date Requested:March 22, 2005
Time Requested:03:28 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R495 Intro SB651
CBD Subject: Dependent Child Tax Credit
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 a tax credit of fifty dollars for each dependent child of the taxpayer.
    
    According to our interpretation, passage of this bill would result in a decline in General Revenue Fund collections of approximately $19.8 million per year beginning in FY 2007. Due to the lack of an internal effective date the credit would first apply to tax years beginning on or after January 1, 2006.
    
    There would be a minimal increase in administrative costs for 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 0 -21,800,000
3. Explanation of above estimates (including long-range effect):
    The bill would provide a credit against Personal Income Tax for each dependent child of the taxpayer with federal adjusted gross income of less than $100,000. Passage of this bill would result in a decrease in the General Revenue Fund of approximately $19.8 million per year beginning in FY2007. Roughly 192,000 taxpayers would be eligible to claim the proposed credit.
    
    Passage of this bill would result in a minimal increase in administrative costs for the Tax Department.


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