Date Requested:January 13, 2011
Time Requested:06:08 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1666 Introduced HB2215
CBD Subject: COLLEGE GRAD TAX EXEMPTION
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to give current undergraduate students relief from paying state income taxes and graduates of undergraduate programs relief from paying state income taxes for a period of two years.
    
    We are unable to accurately estimate the loss to the State General Revenue Fund from passage of this bill. The State Tax Department does not possess the necessary information on the income tax liability of students or graduates with student loans. Due to the lack of an internal effective date, the provisions of this bill would first become effective for tax years beginning on or after January 1, 2012.
    
    If all returns were accepted as filed, 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 0 0
3. Explanation of above estimates (including long-range effect):
    The bill would provide full-time students in an accredited undergraduate program at a West Virginia public institution of higher learning with an exemption from Personal Income Tax if the student has incurred debt in the form of a student loan and has paid the institution an amount equal to at least 75% of their Personal Income Tax liability. Graduates of undergraduate programs at West Virginia public institutions of higher learning would also be eligible for the exemption in the first two years following graduation. We are unable to accurately estimate the loss to the State General Revenue Fund from passage of this bill. The State Tax Department does not possess the necessary information on the income tax liability of students or graduates with student loans.
    
    If all returns were accepted as filed, there would be no additional administrative costs.
    


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