Date Requested:January 20, 2011
Time Requested:03:32 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1590 Introduced HB2659
CBD Subject: EXEMPT $20,000 STATE PENSIONS & SOCIAL SECURITY
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 exempt the first $20,000 of state pensions and social security benefits from West Virginia personal income tax.
    
    The bill, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled. The provisions of this bill would reduce General Revenue Fund collections by roughly $24.9 million in FY2012. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
    
    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, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees. The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled, but surviving spouses must include the additional $20,000 modification in calculating the $8,000 modification. In addition, under this proposal, a surviving spouse may claim an additional $8,000 exclusion in addition to the $8,000 exclusion for being a senior citizen. The provisions of this bill would reduce General Revenue Fund collections by roughly $24.9 million in FY2012. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
    
    There would be no additional administrative costs.
    


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