Date Requested:February 07, 2011
Time Requested:04:43 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1726 Introduced HB3025
CBD Subject: EXEMPT FIRST $20,000
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 public employees pensions from personal income tax.
    
    According to our interpretation, passage of this bill would result in an annual State General Revenue Fund reduction of at least $25.4 million per year beginning in FY 2013. The bill does not define public employees pension income. The proposed $20,000 decreasing modification could apply to federal, state, county municipal employees receiving pensions from retirement systems other than the West Virginia Public Employees’ Retirement System, the West Virginia Teachers’ Retirement System or federal or military retirement systems.
    
    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):
    According to our interpretation, passage of this bill would result in an annual State General Revenue Fund reduction of at least $25.4 million per year beginning in FY 2013. The bill does not define public employees pension income. The proposed $20,000 decreasing modification could apply to federal, state, county municipal employees receiving pensions from retirement systems other than the West Virginia Public Employees’ Retirement System, the West Virginia Teachers’ Retirement System or federal or military retirement systems.
    
    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 exempt the first $20,000 of public employees pensions from personal income tax.
    
    The bill does not define “public employees” or “public employees pension income”. This could result in the application of the proposed $20,000 decreasing modification to federal, state, county municipal employees receiving pensions from retirement systems other than the West Virginia Public Employees’ Retirement system, the West Virginia Teachers’ Retirement System or federal or military retirement systems.