Date Requested:February 16, 2013
Time Requested:11:15 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1689 Introduced HB2402
CBD Subject: DISABLED VETS
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 disabled veterans who have suffered a one hundred percent total and permanent service-connected disability as certified by the Director of the Department of Veterans Affair from state income tax.
    
     According to our interpretation, due to the fact that veterans disability payments are already exempt from tax, and the fact that permanently disabled West Virginians receive an income modification of $8,000, we estimate that passage of the bill would generally result in a fiscal impact of less than $1.0 million per year beginning in FY2015. However, given the unlimited nature of a full income exclusion, there would be significant year to year variance in the value of the proposed exclusion due to potential changes in income for some disabled veterans and to changes in the number of disabled veterans. If passed, the exemption would begin on January 1, 2014.The bill provides for a personal income tax exemption for all income of a disabled veteran who have suffered a one hundred percent total, and permanent, service connected disability as certified by the Director of the Department of Veterans’ Affairs of West Virginia.
    
     Additional administrative costs for the State Tax Department attributable to the passage of this bill would be minimal.
    

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 -1,000,000
3. Explanation of above estimates (including long-range effect):
     According to our interpretation, due to the fact that veterans disability payments are already exempt from tax, and the fact that permanently disabled West Virginians receive an income modification of $8,000, we estimate that passage of the bill would generally result in a fiscal impact of less than $1.0 million per year beginning in FY2015. However, given the unlimited nature of a full income exclusion, there would be significant year to year variance in the value of the proposed exclusion due to potential changes in income for some disabled veterans and to changes in the number of disabled veterans. If passed, the exemption would begin on January 1, 2014.The bill provides for a personal income tax exemption for all income of a disabled veteran who have suffered a one hundred percent total, and permanent, service connected disability as certified by the Director of the Department of Veterans’ Affairs of West Virginia.
    
     Additional administrative costs for the State Tax Department attributable to the passage of this bill would be minimal.
    


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