Date Requested:January 13, 2011
Time Requested:02:14 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1262 Introduced HB2245
CBD Subject: CLARIFY MILITARY PENSIONS
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 amend the West Virginia personal income tax to cause federal civil service system pension income derived from military retirement system pensions that have been converted into federal civil service system pensions to have the same decreasing modification treatment as military retirement system income.
    
    The State Tax Department does not have access to information necessary to distinguish between normal federal civil service pensions and federal civil service pensions that include converted military pensions. Thus, we are unable to estimate the potential revenue impact that would result from passage of this bill.
    
    Passage of this bill may require the State Tax Department to alter normal tax return processing in order to determine whether a federal civil service pension was solely attributable to federal civil service or if the pension included converted military retirement benefits. The additional administrative costs could be significant.

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 0
3. Explanation of above estimates (including long-range effect):
    The State Tax Department does not have access to information necessary to distinguish between normal federal civil service pensions and federal civil service pensions that include converted military pensions. Thus, we are unable to estimate the potential revenue impact that would result from passage of this bill.
    
    Passage of this bill may require the State Tax Department to alter normal tax return processing in order to determine whether a federal civil service pension was solely attributable to federal civil service or if the pension included converted military retirement benefits. The additional administrative costs could be significant.
    


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