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 a personal income tax credit for people who have their dog or cat spayed or neutered.
    
    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The State Tax Department does not have sufficient data to quantify the loss of revenue associated with the provisions of this bill.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for the State Tax Department.
    



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 0 0


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


    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The State Tax Department does not have sufficient data to quantify the loss of revenue associated with the provisions of this bill.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for the State Tax Department.
    



Memorandum


    The stated purpose of this bill is to provide a personal income tax credit for people who have their dog or cat spayed or neutered.
    
    This bill proposes to create a tax credit for people who have their dog or cat spayed or neutered. However, as written, the bill actually proposes an “additional modification reducing federal adjusted gross income”. There is no tax credit contained anywhere within the bill.
    
    Also, the statute would only allow a decreasing modification for amounts actually spent, but this amount cannot exceed “the reasonable cost of the spay and neuter process in the state”. It would be difficult to calculate the reasonable cost of a spay and neuter process, and there is no mechanism in the bill for determining that amount.
    
    
    



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