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 a West Virginia citizen with a tax credit against his or her income tax for the sale of stock in a corporation located in West Virginia.
According to our interpretation, this bill would provide a West Virginia resident with a tax credit against the Personal Income Tax related to the sale of stock of a corporation “which has its principle [sic] place of business in West Virginia.” The State Tax Department does not have access to the information necessary to accurately estimate the revenue impact of this bill.
Assuming that all Personal Income Tax returns with the specified credit would be accepted as filed, additional administrative costs to the State Tax Department associated with this bill would be minimal. However, any requirement to verify the credit would result in significant additional administrative costs.
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, this bill would provide a West Virginia resident with a tax credit against the Personal Income Tax related to the sale of stock of a corporation “which has its principle [sic] place of business in West Virginia.” The State Tax Department does not have access to the information necessary to accurately estimate the revenue impact of this bill.
Assuming that all Personal Income Tax returns with the specified credit would be accepted as filed, additional administrative costs to the State Tax Department associated with this bill would be minimal. However, any requirement to verify the credit would result in significant additional administrative costs.
Memorandum
The stated purpose of this bill is to provide a West Virginia citizen with a tax credit against his or her income tax for the sale of stock in a corporation located in West Virginia.
While this bill indicates that a resident is allowed a credit “for the sale of stock in a corporation which has its principle [sic] place of business in West Virginia,” the bill neither specifies the amount of the actual credit nor whether the credit is based upon the gross proceeds of the sale, the net proceeds (selling price less purchase price) of the sale, or some other measure of the sale.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us