Date Requested:January 24, 2011
Time Requested:04:29 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1307 Introduced HB2768
CBD Subject: TAX EXEMPTION FOR ORGAN DONORS
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 a personal income tax exemption for living organ donors.
    
    This bill would exempt all personal income tax liability of an individual for the year in which the individual donates all or part of a liver, pancreas, kidney, intestine, lung or bone morrow. As a result, the passage of this bill may result in an average annual loss of less than $100,000 to the General Revenue Fund.
    
    There would be no additional administrative cost to the State Tax Department associated with this bill.

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 -100,000 -100,000
3. Explanation of above estimates (including long-range effect):
    According to the United States Department of Health and Human Resources in 2010 approximately 5,456 living donors donated full or part of their organ in United States. Living donors represents 0.002% of the total United States’ population.
    
    This bill would exempt all personal income tax liability of an individual for the year in which the individual donates all or part of a liver, pancreas, kidney, intestine, lung or bone morrow. As a result, the passage of this bill may result in an average annual loss of less than $100,000 to the General Revenue Fund. Statistically, less than 50 taxpayers would qualify for the exemption each year. Actual revenue loss will depend upon the income characteristics of the group and would vary greatly from one year to the next.
    
    There would be no additional administrative cost to the State Tax Department associated with this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The purpose of this bill is to provide a personal income tax exemption for living organ donors.
    
    The bill does not address the issue of whether the exemption would be for the entire tax liability on a joint return or just the tax liability attributable to the individual making the organ donation.