Date Requested:February 16, 2009
Time Requested:11:59 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009R2044 Introduced SB248
CBD Subject: MINIMUM TAX EXPIRATION
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 the expiration of the alternative minimum tax.
    
    According to our interpretation, passage of this bill would nullify the minimum tax that is computed as 25 percent of a taxpayer’s federal alternative minimum tax for tax years beginning on or after January 1, 2010. Due to inflationary increases in income, more “middle income” taxpayers have become subject to the minimum tax provisions in recent years. Passage of this bill will result in a reduction on the General Revenue Fund of less than $1 million per year beginning in FY2011.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    
Fiscal Note Detail
Over-all effect
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 0 -1,000,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would nullify the minimum tax that is computed as 25 percent of a taxpayer’s federal alternative minimum tax for tax years beginning on or after January 1, 2010. Due to inflationary increases in income, more “middle income” taxpayers have become subject to the minimum tax provisions in recent years. Passage of this bill will result in a reduction on the General Revenue Fund of less than $1 million per year beginning in FY2011.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    

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