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 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 2009-2010. Absent an internal effective date, the provisions of this bill would become effective for the 2009 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 administrative costs to the State Tax Department. However, the State Fire Marshal may incur additional administrative costs due to passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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 |
Explanation of above estimates (including long-range effect):
The bill would provide a “tax reduction” on state personal income tax to members of volunteer fire departments. This bill provides for varying levels of tax reduction dependent upon the number of years of qualified service of the volunteer fire department member. According to available State data, approximately 11,600 volunteers may qualify for this exemption.
Passage of this bill would reduce General Revenue Fund collections by approximately $5.3 million per year beginning in Fiscal Year 2009-2010. Absent an internal effective date, the provisions of this bill would become effective for the 2009 tax year.
Passage of this bill would result in no additional administrative costs to the State Tax Department. However, the State Fire Marshal may incur additional administrative costs due to passage of this bill.
Memorandum
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 State Fire Marshal, in consulting with the State Firemen’s Association, 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.
As written, this proposes an amendment to W. Va. Code §11-21-4e for firefighters. However, W. Va. Code §11-21-4e pertains to the tax rate. Another code section may be more appropriate for the proposed change.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us