Date Requested:February 14, 2013
Time Requested:01:56 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1867 Introduced SB104
CBD Subject: NEUTER PETS TAX DEDUCTION
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 West Virginia personal income tax modification reducing federal adjusted gross income for people who have spayed or neutered their dog or cat.
    
     As written, the passage of this bill would provide a Personal Income Tax modification reducing 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 the state for spaying or neutering, would reduce General Revenue collections by up to $500,000 dollars in FY2015. 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, 2014.
    
     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
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 -500,000
3. Explanation of above estimates (including long-range effect):
     As written, the passage of this bill would provide a Personal Income Tax modification reducing 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 the state for spaying or neutering, would reduce General Revenue collections by up to $500,000 dollars in FY2015. 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, 2014.
    
     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 B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The purpose of this bill is to provide a West Virginia personal income tax modification reducing federal adjusted gross income for people who have spayed or neutered their dog or cat.
    
     The proposed bill allows a modification reducing federal adjusted gross income in the amount actually paid for spaying and neutering pet dogs and cats by a licensed veterinarian. The procedure must be on a live cat or dog, the cost cannot exceed the reasonable cost of the procedure in the state, and is limited to no more than three companion dogs and cats per household in any “taxable year.” The bill does not specify that the veterinarian is licensed or practicing in West Virginia.
    
     There is no stated effective date. There is no stated authority to promulgate rules except those under article 10, chapter 11 of the Code. The bill assumes that taxpayers are honest.