Date Requested:January 12, 2011
Time Requested:03:54 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1023 Introduced SB6
CBD Subject: MILITARY RETIREMENT 1ST $20,000
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 exempt all military retirement income from state income tax.
    
    The 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 $1.7 million, beginning in FY2013.
    
    There would be no additional administrative costs to the Tax Department associated with passage of this bill.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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 -1,700,000
3. 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, 2011. Passage of this bill would result in a decrease in General Revenue Fund collections of roughly $1.7 million beginning in FY2013.
    
    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:
kerri.r.petry@wv.gov