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 reduce state income taxes for state and federal retirees by increasing the exemption on retirement income in calculating the federal adjusted gross income for state personal income tax purposes. The bill, as written, increases the decreasing modification for pension income for PERS, the Teachers’ Retirement System and federal retirees from $2,000 to $20,000. The increase in this modification would reduce General Revenue Fund collections by roughly $20.2 million beginning in Tax Year 2011. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. There would be no additional administrative costs.



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, increases the decreasing modification for pension income for PERS, the Teachers’ Retirement System and federal retirees from $2,000 to $20,000. The increase in this modification would reduce General Revenue Fund collections by roughly $20.2 million beginning in Tax Year 2011. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. There would be no additional administrative costs.



Memorandum






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