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 purpose of this bill is to exempt the first $4,000 of state and federal pensions for retirees under the age of sixty-five and exempt $16,000 of those pensions for retirees who are sixty-five or older.
    
    Passage of this change would reduce General Revenue Fund collections by roughly $8.5 million in FY2010. The estimate assumes that these new modifications count against the $8,000 income modification for senior citizens. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    There would be no additional administrative costs associated with the change in the modification for current tax years.
    



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 -8,500,000 0


Explanation of above estimates (including long-range effect):


    Passage of this change would reduce General Revenue Fund collections by roughly $8.5 million in FY2010. The estimate assumes that these new modifications count against the $8,000 income modification for senior citizens. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    There would be no additional administrative costs associated with the change in the modification for current tax years.
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us