Date Requested:January 13, 2011
Time Requested:03:52 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1425 Introduced HB2364
CBD Subject: ONE-TIME SUPPLEMENT FOR CERTAIN ANNUITANTS
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 tax liability for certain retired public employees and increase the amount of retirement income received from certain state and federal retirement systems that is excluded from the calculation of income subject to state personal income taxes.
    
    The bill, as written, increases the decreasing modification for benefits received under PERS, the Teachers’ Retirement System and federal retirement from $2,000 to $4,000. In addition, the bill increases the maximum modification for senior citizens and those who are permanently and totally disabled to $16,000 if the person receives benefits from PERS or the Teachers’ Retirement System or military or federal retirement systems. Passage of this bill would result in a decrease in General Revenue Fund collections of $10.7 million beginning in FY2012. 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
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 -10,700,000 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, increases the decreasing modification for benefits received under PERS, the Teachers’ Retirement System and federal retirement from $2,000 to $4,000. In addition, the bill increases the maximum modification for senior citizens and those who are permanently and totally disabled to $16,000 if the person receives benefits from PERS or the Teachers’ Retirement System or military or federal retirement systems. Passage of this bill would result in a decrease in General Revenue Fund collections of $10.7 million beginning in FY2012.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