Date Requested:February 16, 2011
Time Requested:03:26 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2736 Introduced HB3154
CBD Subject: INSTATE ACTIVE MILITARY RESIDENTS
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 from taxation active duty military pay for active duty military personnel who are residents of West Virginia and stationed in the state.
    
    The bill, as written, exempts all military pay received for the period of time an individual, who is a resident of West Virginia, is on active duty as a member of the National Guard or Armed Forces Reserves. Passage of this bill would result in a loss to the General Revenue Fund of $500,000 per year for active duty pay.
    
    If the court interprets this legislative change to be retroactive to 2000, the State Tax Department would incur additional administrative costs in the fiscal year of the court ruling to process amended returns. If this change is not retroactive, 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 -500,000
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts all military pay received for the period of time an individual, who is a resident of West Virginia, is on active duty as a member of the National Guard or Armed Forces Reserves. Passage of this bill would result in a loss to the General Revenue Fund of $500,000 per year for active duty pay.
    
    If the court interprets this legislative change to be retroactive to 2000, the State Tax Department would incur additional administrative costs in the fiscal year of the court ruling to process amended returns. If this change is not retroactive, 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 from taxation active duty military pay for active duty military personnel who are residents of West Virginia and stationed in the state.
    
    The language of the bill is ambiguous, but there is significant potential for the court to interpret the legislation as retroactive back to 2000.