Date Requested:January 14, 2012
Time Requested:01:11 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1538 Carry Over HB2043
CBD Subject: REDUCTION FOR STATE/FEDERAL RETIREES
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 reduce state income taxes for state and federal retirees by increasing the exemption on retirement income in calculating the federal gross income for state personal income tax purposes.
    
    The bill, as written, moves the decreasing modification for pension benefits from PERS, the Teachers’ Retirement System and federal retirement plans outside the calculations for the $8,000 senior citizens’ modification and increases the exempt amount for federal retirees to $20,000. The provisions of this bill would reduce General Revenue Fund collections by roughly $9.5 million in FY2013. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    There would be no additional administrative costs associated with the change in the modification for current tax years.
    
    

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 -9,500,000 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, moves the decreasing modification for pension benefits from PERS, the Teachers’ Retirement System and federal retirement plans outside the calculations for the $8,000 senior citizens’ modification and increases the exempt amount for federal retirees to $20,000. The provisions of this bill would reduce General Revenue Fund collections by roughly $9.5 million in FY2013. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    There would be no additional administrative costs associated with the change in the modification for current tax years.
    
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov