Date Requested:February 04, 2011
Time Requested:03:44 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2469 Introduced HB3009
CBD Subject: RAISING PERSONAL INCOME TAX EXEMPTION
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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled.
    
    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000, effective for tax years beginning after December 31, 2010. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $47.9 million beginning in FY2012.
    
    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 -47,900,000
3. Explanation of above estimates (including long-range effect):
    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000, effective for tax years beginning after December 31, 2010. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $47.9 million beginning in FY2012.
    
    There would be no additional administrative costs.
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled.
    
    The proposed bill crosses out the former amount and former effective date of after December 31, 1986. This creates a problem since the statute, if enacted as written, would appear to begin in the year 2011.