Date Requested:February 21, 2011
Time Requested:02:08 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2912 Introduced HB3267
CBD Subject: MILITARY AND SPOUSES 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 provide an additional decreasing modification reducing federal adjusted gross income for income earned by military personnel and their spouses during a period of service in an area of armed conflict.
    
    The bill, as written, exempts all income earned by military personnel and their spouses from Personal Income Tax during a period of service in an area of armed conflict. Passage of this bill would result in a loss in General Revenue of roughly $1.0 million beginning in Fiscal Year 2012.
    
    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 -1,000,000 -1,000,000
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts all income earned by military personnel and their spouses from Personal Income Tax during a period of service in an area of armed conflict. Passage of this bill would result in a loss in General Revenue of roughly $1.0 million beginning in Fiscal Year 2012.
    
    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 provide an additional decreasing modification reducing federal adjusted gross income for income earned by military personnel and their spouses during a period of service in an area of armed conflict.
    
    The amount of the decreasing modification is $100,000 per year for single filers and taxpayers filing separately and $200,000 per year for joint filers. It is possible that the $200,000 decreasing modification may be available even if the spouse is a non-working spouse.