Date Requested:February 14, 2013
Time Requested:02:00 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2028 Introduced SB133
CBD Subject: MILITARY, NATIONAL GUARD AND RESERVE INCOME
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 exempt all military, National Guard and Reserve income from state income taxes.
    
    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2012. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.5 million from the exemption of reserve pay and $800,000 for active duty pay beginning in Fiscal Year 2014.
    
    There would be no additional administrative costs.
    

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 -4,300,000 -4,300,000
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2012. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.5 million from the exemption of reserve pay and $800,000 for active duty pay beginning in Fiscal Year 2014.
    
    There would be no additional administrative costs.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
    The stated purpose of this bill is to exempt all military, National Guard and Reserve income from state income taxes.
    
    The term “military income” is not defined in the bill. The bill is silent as to whether military retirement is included in “all military income”.