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 update the meaning of “federal adjusted gross income” and certain other terms used but not defined in the West Virginia Personal Income Tax Act by bringing them into conformity with their meanings for federal tax purposes. As written, this bill will update West Virginia’s Personal Income Tax Law with the laws of the United States, in effect prior to January 1, 2010, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made after February 18, 2009 (i.e., the enactment date of the American Recovery and Reinvestment Act of 2009) but before January 1, 2010. Federal tax law provisions enacted after the American Recovery and Reinvestment Act of 2009 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2011. Additional administrative costs to the State Tax Department associated with this bill will be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
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):


Passage of this bill will update West Virginia’s Personal Income Tax Law with the laws of the United States, in effect prior to January 1, 2010, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made after February 18, 2009 (i.e., the enactment date of the American Recovery and Reinvestment Act of 2009) but before January 1, 2010. Federal tax law provisions enacted after the American Recovery and Reinvestment Act of 2009 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2011. Additional administrative costs to the State Tax Department associated with this bill will be minimal.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov