Date Requested:January 13, 2011
Time Requested:03:50 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1390 Introduced HB2424
CBD Subject: TAX CREDITS FOR MEDICAL PURPOSES
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 provide tax credits to those people paying for qualified medical expenses, or health insurance, or both medical expenses and health insurance.
    
    As written, this bill would allow a credit against personal income tax liability of up to $2,500 for single filers and $5,000 for joint filers for medical care expenses, not reimbursed by an insurance company, or for the cost of health insurance paid by the taxpayer. As a result, the passage of this bill could result in a approximate loss of about $1.0 billion per year to the General Revenue Fund.
    
    There would be no additional administrative costs to the State Tax Department.
    

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 -1,000,000,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to provide tax credits to those people paying for qualified medical expenses, or health insurance, or both medical expenses and health insurance.
    
    As written, this bill would allow a credit against personal income tax liability of up to $2,500 for single filers and $5,000 for joint filers for medical care expenses, not reimbursed by an insurance company, or for the cost of health insurance paid by the taxpayer. As a result, the passage of this bill could result in a approximate loss of about $1.0 billion per year to the General Revenue Fund.
    This estimate is based upon average health care expenses in the U.S. (including health insurance costs) by income level and average tax liabilities, by income level, for income tax filers in the State.
    
    There would be no additional administrative costs to the State Tax Department.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to provide tax credits to those people paying for qualified medial expenses, or health insurance, or both medical expenses and health insurance.
    
    This bill is very broad in nature. There is no definition of “expenses incurred for medical care” or “expenses incurred for health insurance.” Also there is no effective date in the bill