Date Requested:February 01, 2012
Time Requested:03:18 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1846 Introduced HB4381
CBD Subject: RETIREE INCOME EXEMPTION INCREASED
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 certain 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, increases the decreasing modification for pension income for PERS, the Teachers’ Retirement System and federal retirees from $2,000 to $20,000 and limits the amount a taxpayer claiming a modification for military retirement and for another government pension to $22,000. Passage of this bill would result in a reduction in General Revenue Fund collections of roughly $19.6 million per year beginning in Tax Year 2013. 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
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 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, increases the decreasing modification for pension income for PERS, the Teachers’ Retirement System and federal retirees from $2,000 to $20,000 and limits the amount a taxpayer claiming a modification for military retirement and for another government pension to $22,000. Passage of this bill would result in a reduction in General Revenue Fund collections of roughly $19.6 million per year beginning in Tax Year 2013. 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