FISCAL NOTE
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 that for the two thousand seven tax year, the qualified low income taxpayer shall be allowed to claim one hundred percent of the amount of the tax credit.
According to our interpretation, passage of this bill would remove the tax year 2007 Low-Income Family Tax Credit limitation of 50 percent. Thus, qualified taxpayers would be able to claim 100 percent of the Low-Income Family Tax Credit otherwise available. Enactment of this bill will reduce Fiscal Year 2008 General Revenue Fund collections by $10 million. As written, the bill will have no effect on revenue in succeeding years.
There would be no additional administrative costs to the State Tax Department associated with this bill.
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 |
-10,000,000 |
0 |
Explanation of above estimates (including long-range effect):
Passage of this bill would remove the tax year 2007 Low-Income Family Tax Credit limitation of 50 percent. Thus, qualified taxpayers would be able to claim 100 percent of the Low-Income Family Tax Credit otherwise available. Enactment of this bill will reduce Fiscal Year 2008 General Revenue Fund collections by $10 million. As written, the bill will have no effect on revenue in succeeding years.
There would be no additional administrative costs to the State Tax Department associated with this bill.
Memorandum
The stated purpose of this bill is to provide that for the two thousand seven tax year, the qualified low income taxpayer shall be allowed to claim one hundred percent of the amount of the tax credit.
In addition to striking a proviso limiting the Low-Income Family Tax Credit to 50 percent of the credit otherwise available for the 2007 tax year, the proposed change strikes language referring to the credit calculation methodology.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us