FISCAL NOTE
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
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 |
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
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”.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov