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 purpose of this bill is to exempt all military retirement income from state income tax.
This bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. Passage of this bill would reduce General Revenue Fund collections by roughly $800,000 in FY2010.
There would be no additional administrative costs to the Tax Department associated with passage of this bill.
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 |
-800,000 |
-800,000 |
Explanation of above estimates (including long-range effect):
This bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. The provisions of the bill would become effective for tax years beginning after December 31, 2008. Passage of this bill would result in a decrease in General Revenue Fund collections of roughly $800,000 in FY2010.
There would be no additional administrative costs to the Tax Department associated with passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us