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 permit any income derived from the West Virginia State Teachers Retirement System received by each individual retired public school teacher and service personnel, as well as any income received by each individual active public school teacher and service personnel pursuant to the carrying out of their duties in such positions to be subtracted from federal adjusted gross income for state personal income tax purposes.
The bill, as written, would exempt all pension income received from the State Teachers’ Retirement System and all income received by active public school teachers and school service personnel from West Virginia Personal Income Tax. If the bill is interpreted to only include pay received by teachers and school service personnel from their employment by county boards of education, there would be a loss of revenue to the State General Revenue Fund of at least $60.0 million per year beginning in Fiscal Year 2012. If the bill is interpreted to include all income received by teachers and school service personnel, the impact would be greater. There could be some revenue decrease in Fiscal Year 2011 due to changes in withholding and estimated payments.
There would be no additional administrative costs associated with this bill.
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):
The bill, as written, would exempt all pension income received from the State Teachers’ Retirement System and all income received by active public school teachers and school service personnel from West Virginia Personal Income Tax. If the bill is interpreted to only include pay received by teachers and school service personnel from their employment by county boards of education, there would be a loss of revenue to the State General Revenue Fund of at least $60.0 million per year beginning in Fiscal Year 2012. If the bill is interpreted to include all income received by teachers and school service personnel, the impact would be greater. There could be some revenue decrease in Fiscal Year 2011 due to changes in withholding and estimated payments.
There would be no additional administrative costs associated with this bill.
Memorandum
The stated purpose of this bill is to permit any income derived from the West Virginia State Teachers Retirement System received by each individual retired public school teacher and service personnel, as well as any income received by each individual active public school teacher and service personnel pursuant to the carrying out of their duties in such positions to be subtracted from federal adjusted gross income for state personal income tax purposes.
It is unclear whether public school administrators may use this provision since it only concerns teachers and service personnel. Also, the bill add subdivision (5) to subsection (c), renumbers previous subdivision (5) to subdivision (6) but then fails to renumber the remaining subdivisions. The net result is that there are two subdivision (6)’s.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov