Date Requested:January 25, 2011
Time Requested:02:27 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2104 Introduced SB269
CBD Subject: PET NEUTERING & SPAYING INCOME TAX CREDIT
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 purpose of this bill is to provide a personal income tax deduction for people who have their dog or cat spayed or neutered.
    
    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The State Tax Department does not have sufficient data to quantify the loss of revenue associated with the provisions of this bill.
    
    Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2012.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for 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 0
3. Explanation of above estimates (including long-range effect):
    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The State Tax Department does not have sufficient data to quantify the loss of revenue associated with the provisions of this bill.
    
    Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2012.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for the State Tax Department.
    


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 deduction for people who have their dog or cat spayed or neutered.
    
    Language of the bill incorrectly identifies a modification reducing federal adjusted gross income as “deduction.” This may be in conflict with W. Va. Code §§ 11-21-13, 11-21-14 and 11-21-15 which state that no West Virginia deductions are allowed. Also, proposed bill lacks internal effective date.
    
    Also, the statute would only allow a decreasing modification for amounts actually spent, but this amount cannot exceed “the reasonable cost of the spay and neuter process in the state”. It would be difficult to calculate the reasonable cost of a spay and neuter process, and there is no mechanism in the bill for determining that amount.