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 stated purpose of this bill is to provide a modification reducing federal adjusted gross income for contributions to public institutions of higher education and community and technical colleges located in West Virginia.
According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $3 million per year beginning in Fiscal Year 2008-2009. This bill would create a decreasing modification to federal adjusted gross income for contributions to public institutions of higher education and community and technical colleges located in West Virginia. This proposed modification would first become effective for tax years beginning on or after January 1, 2008.
If all returns with modifications for contributions are accepted as filed, there would be no additional administrative costs to the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
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 |
-3,000,000 |
Explanation of above estimates (including long-range effect):
This bill would create a decreasing modification to federal adjusted gross income for contributions to public institutions of higher education and community and technical colleges located in West Virginia at a cost of roughly $3 million per year. This proposed modification would first become effective for tax years beginning on or after January 1, 2008. More than 70 percent of all Americans make charitable contributions and 13 percent of all contributions are made to educational causes.
If all returns with modifications for contributions are accepted as filed, there would be no additional administrative costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us