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 for a tax credit to landlords who rent residential property to parolees.
We are unable to accurately estimate the loss to the State General Revenue Fund from passage of this bill. The State Tax Department does not have information on the personal income tax liability, corporate net income tax liability or the business franchise tax liability of potential West Virginia landlords.
Additional administrative costs to the State Tax Department, attributable to printing and promotional expenses, would total $5,000.
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 |
5,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
5,000 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to provide for a tax credit to landlords who rent residential property to parolees. We are unable to accurately estimate the loss to the State General Revenue Fund from passage of this bill because data is not available on the personal income tax liability, corporate net income tax liability or the business franchise tax liability of potential West Virginia landlords. The proposed credit is not based upon rent payments, but upon the total tax liability of the individual landlord.
Additional administrative costs to the State Tax Department, attributable to printing and promotional expenses, would total $5,000.
Memorandum
The stated purpose of this bill is to provide for a tax credit to landlords who rent residential property to parolees.
The section of the proposed bill § 11-13Z-2(a) provides that “The credit shall be in an amount equal to three percent of the tax due, beginning in taxable year 2009 . . .” However, § 11-13Z-2(b) states that “The credit . . . shall apply to . . . liabilities arising after December 31, 2009.” The two dates are incompatible: under the first, landlords could apply for the credit beginning in 2010, under the second, landlords would not be able to apply for the credit until 2011. Additionally, the proposed credit is not based upon rent payments from parolees, but upon the total tax liability of the individual landlord. Thus, a landlord could rent a single unit to a parolee while receiving an offset of tax liability attributable to all other activities.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us