Date Requested:March 22, 2005
Time Requested:03:37 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1850 Intro SB624
CBD Subject: Volunteer Fireman Exempt
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 provide a reduction in the tax obligation of volunteer firefighters who meet certain training and fire fighting qualifications. Under the provisions of this bill a volunteer fire fighter would receive a reduction of $100 for one year of qualified service, $250 for three years of qualified service and $500 for five or more years of qualified service.
    
    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by approximately $5.3 million per year beginning in Fiscal Year 2006-2007. Absent an internal effective date, the provisions of this bill would become effective for the 2006 tax year. This bill provides for varying levels of tax reduction dependent upon the number of years of qualified service of the volunteer fire department member.
    
    Passage of this bill would result in no additional 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 -5,300,000 -5,300,000
3. Explanation of above estimates (including long-range effect):
    According to our interpretation, passage of this bill would reduce General Revenue Fund collections by approximately $5.3 million per year beginning in Fiscal Year 2006-2007. Absent an internal effective date, the provisions of this bill would become effective for the 2006 tax year. This bill provides for varying levels of tax reduction dependent upon the number of years of qualified service of the volunteer fire department member.
    
    Passage of this bill would result in no additional 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 provide a reduction in the tax obligation of volunteer firefighters who meet certain training and fire fighting qualifications. Under the provisions of this bill a volunteer fire fighter would receive a reduction of $100 for one year of qualified service, $250 for three years of qualified service and $500 for five or more years of qualified service.
    
    The amount of the reduction ranges from $100 after one year of qualified service to $500 after five years of qualified service. The bill does not indicate how long the reduction is to last once achieved. The bill requires the West Virginia state fire marshal to develop a “performance based point system” which would allow members of volunteer fire departments to meet the qualified service requirements. However, the bill does not really define “performance based point system,” but it does list various items a fire fighter must participate or attend as a minimum.