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 change the qualifier for low income to 250% or less of the federal poverty guideline from 150% or less of the federal poverty guideline for a senior citizens’ homestead tax credit. As written, this bill, would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 250 percent of the federal poverty guideline based upon family size. Currently, the eligibility criteria is federal adjusted gross income of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $4.3 million. Assuming that all Personal Income Tax returns claiming the credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
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 -4,300,000 -4,300,000


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


Passage of this bill would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 250 percent of the federal poverty guideline based upon family size. Currently, the eligibility criteria is federal adjusted gross income of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $4.3 million. Assuming that all Personal Income Tax returns claiming the credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.



Memorandum


The stated purpose of this bill is to change the qualifier for low income to 250% or less of the federal poverty guideline from 150% or less of the federal poverty guideline for a senior citizens’ homestead tax credit. The stated purpose refers to a “senior citizens’ homestead tax credit” while the West Virginia Code refers to the credit as the “Senior citizens’ tax credit for property tax paid on . . . a homestead.”



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