Date Requested:February 15, 2013
Time Requested:02:21 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1904 Introduced HB2484
CBD Subject: STATE PENSIONS AND SOCIAL SECURITY BENEFITS
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 the first $20,000 of state pensions and social security benefits from West Virginia personal income tax.
    
    The bill, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees. The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled. The provisions of this bill would reduce General Revenue Fund collections by roughly $28.8 million in FY2014. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
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 -28,800,000 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees. The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled. The provisions of this bill would reduce General Revenue Fund collections by roughly $28.8 million in FY2014. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this bill.

Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
    The stated purpose of this bill is to exempt the first $20,000 of state pensions and social security benefits from West Virginia personal income tax.
    
    The bill does not exempt the first $20,000 of social security benefits as stated in the bill title.