Date Requested:February 13, 2012
Time Requested:01:29 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R2090 Introduced SB553
CBD Subject: TAX DEDUCTION FOR SPAYING OR NEUTERING
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 purpose of this bill is to provide a personal income tax deduction for people who have their dog or cat spayed or neutered.
    
    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The passage of this bill, based on low cost option available within state for spaying or neutering, would reduce General Revenue collections by up to $500,000 dollars in FY2014. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2013.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for the State Tax Department.
    
    

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 -500,000
3. Explanation of above estimates (including long-range effect):
    As written, the passage of this bill would provide a Personal Income Tax deduction against adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. The passage of this bill, based on low cost option available within state for spaying or neutering, would reduce General Revenue collections by up to $500,000 dollars in FY 2014. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2013.
    
    Assuming that all Personal Income Tax returns with the modification would be accepted as filed, there would be no additional administrative costs for the State Tax Department.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The purpose of this bill is to provide a personal income tax deduction for people who have their dog or cat spayed or neutered.
    
    The new section introduced by the bill is correctly designated to introduce additional modification to reduce federal adjusted gross income, however, the bill’s title states the bill is creating a personal income tax deduction. The bill also incorrectly states, “there is allowed a deduction against adjusted gross income...” West Virginia does not have income tax deductions as per W. Va. Code § 11-21-13.
    
    The bill requires that the spaying or neutering must be performed by a licensed veterinarian on a living dog or cat, but fails to specify if the veterinarian is licensed in West Virginia.