Date Requested:February 15, 2013
Time Requested:11:55 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1151 Introduced HB2274
CBD Subject: INCOME TAX EXEMPTION
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 raise the maximum personal income tax exemption from $8,000 to $20,000 for persons over the age of sixty-five and for persons who are totally disabled.
    
    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000, effective for tax years beginning after December 31, 2012. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $55.2 million in FY2014. The annual cost of this increase will escalate over time as members of the baby-boom generation reach the age of sixty-five.
    
    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 -55,200,000 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000, effective for tax years beginning after December 31, 2012. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $55.2 million in FY2014. The annual cost of this increase will escalate over time as members of the baby-boom generation reach the age of sixty-five.
    
    There would be no additional administrative costs.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov