Date Requested:February 22, 2013
Time Requested:03:46 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1686 Introduced HB2422
CBD Subject: MILITARY AND SPOUSES PIT 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 provide an additional decreasing modification reducing federal adjusted gross income for income earned by military personnel and their spouses during a period of service in an area of armed conflict.
    
    The bill, as written, exempts all income earned by military personnel and their spouses from Personal Income Tax during a period of service in an area of armed conflict. The changes in the bill are effective for tax years beginning on or after January 1, 2014. Based on current deployment levels, the provisions of this bill would reduce General Revenue Fund collections by roughly $130,000 in FY2015. For FY2016 and beyond, the revenue impact could fluctuate greatly depending on the number of military personnel stationed overseas in conflict areas.
    
    There would be no additional administrative costs associated with 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 0 0
3. Explanation of above estimates (including long-range effect):
    The bill, as written, exempts all income earned by military personnel and their spouses from Personal Income Tax during a period of service in an area of armed conflict. The changes in the bill are effective for tax years beginning on or after January 1, 2014. Based on current deployment levels, the provisions of this bill would reduce General Revenue Fund collections by roughly $130,000 in FY2015. For FY2016 and beyond, the revenue impact could fluctuate greatly depending on the number of military personnel stationed overseas in conflict areas.
    
    There would be no additional administrative costs associated with 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 provide an additional decreasing modification reducing federal adjusted gross income for income earned by military personnel and their spouses during a period of service in an area of armed conflict.
    
    The amount of the decreasing modification is $100,000 per year for single filers and taxpayers filing separately and $200,000 per year for joint filers. It is possible that the $200,000 decreasing modification may be available even if the spouse is a non-working spouse.