Date Requested:February 14, 2013
Time Requested:01:23 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2013R1431 Introduced SB51
CBD Subject: TAX CREDIT TO NURSE FACULTY
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 promote the retention of nursing education faculty by providing them 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 FY2015. Due to the lack of an internal effective date, this bill would not become effective until the 2014 Tax Year.
    
     Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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 promote the retention of nursing education faculty by providing them 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 FY2015. Due to the lack of an internal effective date, this bill would not become effective until the 2014 Tax Year.
    
     Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to promote the retention of nursing education faculty by providing them a tax credit.
    
     The bill’s definition of “full-time nursing faculty member” does not contain any requirements that the nursing faculty member possess any particular academic and professional qualification, with the exception of being a “nurse educator,” which is not defined. This could allow an individual without a college degree, or any nursing or medical training to act as a “nursing faculty member.”
    
     19CSR1, “Policies, Standards and Criteria for the Evaluation and Accreditation of Colleges, Departments or Schools of Nursing” requires “nursing faculty members,” both full time and part time, to have following requirements;
     (1) Bachelor degree with a major in nursing and are admitted and enrolled in a graduate degree program with a major in nursing within 1 year of employment int eh faculty position;
     (2) Demonstrate professional competence with experience in nursing practice and sufficient education
     (3) Have credentials verifying status as a registered professional nurse in West Virginia
    
     The bill does not require the “nursing program” taught by the nursing faculty to be accredited according to the requirements of W. Va. Code §30-7-1 et seq., 19CR1, and any other applicable laws and rules.