Date Requested:February 27, 2013
Time Requested:03:20 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1936 Introduced HB2744
CBD Subject: TAX DEDUCTION FOR ALL PREPAID TUITION CONTRACTS
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 allow a tax deduction for all prepaid tuition contracts or college savings plans regardless of whether they are administered by the board of the college prepaid tuition and savings program.
    
     As written, this bill would expand the current decreasing modification to federal adjusted gross income for payments made under all prepaid tuition contracts or other college savings plans, whether or not such plans are administered by the “Board of College Prepaid Tuition and Savings Program”. The passage of this bill would result in a loss to the General Revenue Fund of up to $6.6 million per year.
    
     If all returns were accepted as filed, there would be no additional administrative cost to the State Tax Department.
    

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 -6,600,000
3. Explanation of above estimates (including long-range effect):
     The stated purpose of this bill is to allow a tax deduction for all prepaid tuition contracts or college savings plans regardless of whether they are administered by the board of the college prepaid tuition and savings program.
    
     As written, this bill would expand the current decreasing modification to federal adjusted gross income for payments made under all prepaid tuition contracts or other college savings plans, whether or not such plans are administered by the “Board of College Prepaid Tuition and Savings Program”. The passage of this bill would result in a loss to the General Revenue Fund of up to $6.6 million per year.
    
     If all returns were accepted as filed, there would be no additional administrative cost to the State Tax Department
    


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