Date Requested:January 12, 2011
Time Requested:05:07 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1138 Introduced HB2320
CBD Subject: EXEMPT DNR CONSERVATION OFFICERS' RETIREMENT
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 Division of Natural Resources conservation officers’ retirement pensions from state income tax law.
    
    As written, this bill would increase the reducing modification for retirement income of Division of Natural Resources conservation officers from $2,000 to the total amount of retirement income received from the West Virginia Public Employees Retirement System. Additionally, the bill would make the increase applicable to all returns or amended returns filed after December 31, 2012. According to our interpretation that retired conservation officers would be eligible to apply the increased reducing modification to amended returns filed for tax years 2008, 2009 and 2010, passage of this bill would result in a reduction in the General Revenue Fund of roughly $440,000 in Fiscal Year 2012 and of roughly $150,000 in each succeeding year.
    
    The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
    
    There would be no additional administrative costs for the State 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 -440,000 -150,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would increase the reducing modification for retirement income of Division of Natural Resources conservation officers from $2,000 to the total amount of retirement income received from the West Virginia Public Employees Retirement System. Additionally, the bill would make the increase applicable to all returns or amended returns filed after December 31, 2012. According to our interpretation that retired conservation officers would be eligible to apply the increased reducing modification to amended returns filed for tax years 2008, 2009 and 2010, passage of this bill would result in a reduction in the General Revenue Fund of roughly $440,000 in Fiscal Year 2012 and of roughly $150,000 in each succeeding year.
    
    The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
    
    There would be no additional administrative costs for the State Tax Department associated with passage of this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to exempt Division of Natural Resources conservation officers’ retirement pensions from state income tax law.
    
    The proposed change reads in part as “ . . . retirement income received under the West Virginia Public Employees Retirement System by Division of Natural Resources conservation officers in the form of pensions and annuities, shall be subtracted from federal adjusted gross income to the extent included therein . . . ” As written, the bill would permit the subtraction of all Public Employees Retirement System retirement income regardless of whether the retirement income is attributable to the retiree’s work as a conservation officer or other work eligible for Public Employees Retirement System credit. If the intent is to provide the subtraction to only retirement income solely attributable to service as a conservation officer, additional qualifying language may be necessary.
    
    Additionally, recent legislation re-designated “conservation officers” as “natural resource police officers.” The bill does not provide any guidance as to whether or not persons designated as “natural resource police officers” will be granted the intended benefit.