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 exclude federal interest income when applying $8,000 income exclusion available to persons age sixty-five or older and to persons who are permanently and totally disabled regardless of age and making the change to tax years beginning after December 31, 2013.
Under the provisions of this bill, tax exempt interest earnings from federal obligations would no longer count against the $8,000 income exclusion for senior citizens or disabled individuals. Passage of this bill would reduce General Revenue Fund collections by roughly $900,000 per year beginning in FY2015.
There would 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 |
0 |
-900,000 |
Explanation of above estimates (including long-range effect):
This bill increases the maximum level of income exclusion by up to $8,000 ($16,000 on joint returns) for senior citizens and disabled individuals who receive tax exempt interest income from federal obligations. Interest from federal obligations would no longer count against the $8,000 income exclusion under the provisions of this bill. Passage of this bill would reduce General Revenue Fund collections by roughly $900,000 per year beginning in FY2015.
There would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov