Date Requested:January 13, 2011
Time Requested:06:07 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1659 Introduced HB2106
CBD Subject: 529 TAX DEDUCTIONS FOR ALL PARTICIPANTS
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 allow a tax deduction for all prepaid tuition contracts or college savings plans regardless of whether they are administered by the board of the college prepaid tuition and savings program.
    
    As written, this bill would allow a decreasing modification to federal adjusted gross income for any payment made under a prepaid tuition contract or other college savings plan, whether or not such plan is administered by the “Board of College Prepaid Tuition and Savings Program”. The passage of this bill would result in a loss to the General Revenue Fund of roughly $8.5 million per year.
    
    If all returns were accepted as filed, there would be no additional administrative cost 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 -8,500,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to allow a tax deduction for all prepaid tuition contracts or college savings plans regardless of whether they are administered by the board of the college prepaid tuition and savings program.
    
    As written, this bill would allow a decreasing modification to federal adjusted gross income for any payment made under a prepaid tuition contract or other college savings plan, whether or not such plan is administered by the “Board of College Prepaid Tuition and Savings Program”. The passage of this bill would result in a loss to the General Revenue Fund of roughly $8.5 million per year.
    
    If all returns were accepted as filed, there would be no additional administrative cost to the State Tax Department
    


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