FISCAL NOTE
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 $26.9 million per year beginning in FY2014. 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. 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.
Fiscal Note Detail
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 |
0 |
0 |
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 $26.9 million per year beginning in FY2014. 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. 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.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov