Date Requested:January 12, 2012
Time Requested:02:09 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1177 Introduced SB101
CBD Subject: MILITARY, NATIONAL GUARD AND RESERVE INCOME
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 all military, National Guard and reserve income from state income taxes.
    
    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2011. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.6 million from the exemption of reserve pay and $500,000 for active duty pay beginning in Fiscal Year 2013.
    
    There would be no additional administrative costs.
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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 -4,100,000 -4,100,000
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2011. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.6 million from the exemption of reserve pay and $500,000 for active duty pay beginning in Fiscal Year 2013.
    
    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 all military, National Guard and reserve income from state income taxes.
    
    The term “military income” is not defined in the bill. The bill is silent as to whether military retirement is included in “all military income”.