FISCAL NOTE
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 purpose of this bill is to exempt interest income on United States Savings bonds from state personal income tax for persons sixty-five years old or older.
According to our interpretation, passage of this bill would reduce State General Revenue Fund collections by roughly $800,000 per year beginning in FY2006-2007. Interest income from United States savings bonds is already exempt from state taxes. The provisions of this bill would remove United States savings bond interest from sources of income counted against the $8,000 income exclusion for senior citizens. Due to the lack of an internal effective date, the proposed change would apply to tax years beginning on or after January 1, 2006.
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 |
0 |
-800,000 |
Explanation of above estimates (including long-range effect):
Interest income from United States savings bonds is already exempt from state taxes. The provisions of this bill would remove United States savings bond interest from sources of income counted against the $8,000 income exclusion for senior citizens. According to our interpretation, passage of this bill would reduce State General Revenue Fund collections by roughly $800,000 per year beginning in FY2006-2007. Due to the lack of an internal effective date, the proposed change would apply to tax years beginning on or after January 1, 2006.
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