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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled, for the next three years. The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000 over a three-year period. The modification would increase to $12,000 for Tax Year 2009, to $16,000 for Tax Year 2010, and to $20,000 for Tax Years 2011 and beyond. The revenue losses would be as follows: Fiscal Revenue Year Loss 2011 $55.0 million 2012 $50.1 million The change in the modification for Tax Year 2009 would result in amended returns. The revenue loss for FY2011 includes the loss for those amended 2009 returns as well as the loss for Tax Year 2010 returns. Costs will rise significantly after 2012 as more baby-boomers begin to qualify for this modification. Additional administrative costs to the Tax Department in FY 2011 could be significant due to changes needed in the computer system and processing of amended returns for Tax Year 2009.



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 -55,000,000 0


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


The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000 over a three-year period. The modification would increase to $12,000 for Tax Year 2009, to $16,000 for Tax Year 2010, and to $20,000 for Tax Years 2011 and beyond. The revenue losses would be as follows: Fiscal Revenue Year Loss 2011 $55.0 million 2012 $50.1 million The change in the modification for Tax Year 2009 would result in amended returns. The revenue loss for FY2011 includes the loss for those amended 2009 returns as well as the loss for Tax Year 2010 returns. Costs will rise significantly after 2012 as more baby-boomers begin to qualify for this modification. Additional administrative costs to the Tax Department in FY 2011 could be significant due to changes needed in the computer system and processing of amended returns for Tax Year 2009.



Memorandum






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