Date Requested:January 23, 2012
Time Requested:03:37 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1595 Introduced SB384
CBD Subject: NURSE EDUCATOR TAX CREDIT
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 retain nursing education faculty with a tax credit. The bill also grants rule-making authority to Tax Commissioner.
    
    Assuming that the tax credit would apply against Personal Income Tax, the provisions of this bill would reduce General Revenue collections by approximately $700,000 per year beginning in FY2014. Due to the lack of an internal effective date, this bill would not become effective until the 2013 Tax Year.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal.

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 0 -700,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to retain nursing education faculty with a tax credit. The bill sets forth the criteria for the credit. The bill also grants rule-making authority to Tax Commissioner.
    
    The bill allows tax credit of up to $3,500 for full-time nursing faculty members. There are approximately 272 West Virginia residents who are teaching full-time as nursing faculty at West Virginia higher education institutions with annual salary varying based on institutions and faculty positions. Assuming that the tax credit would apply against Personal Income Tax, the provisions of this bill would reduce General Revenue collections by approximately $700,000 per year beginning in FY2014. Due to the lack of an internal effective date, this bill would not become effective until the 2013 Tax Year.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to retain nursing education faculty with a tax credit.
    
    The bill fails accomplish its purpose. The bill provides a credit of $3,500 for nurse educators by enacting West Virginia Code § 11-27-39, which is in the article for the Health Care Provider Tax. As nursing educators are not subject to the Health Care Provider Tax, this credit would have no effect if it is to be used against that particular tax. It would be more appropriate to amend West Virginia Code § 11-21-12 by enacting a modification reducing federal adjusted gross income. In the alternative, the credit could be enacted by a new section in article 21, which is the Personal Income Tax article.