Date Requested:January 09, 2014
Time Requested:01:45 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1112 Introduced SB83
CBD Subject: NEUTER PETS TAX DEDUCTION
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 a West Virginia personal income tax modification reducing federal adjusted gross income for people who have spayed or neutered their dog or cat.
    
     As written, the passage of this bill would provide a Personal Income Tax modification reducing adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. Passage of this bill would reduce General Revenue Fund collections by up to $500,000 per year beginning in FY2016. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2015.
    
     Additional administrative costs to the State Tax Department would be $40,000.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 40,000
Personal Services 0 0 0
Current Expenses 0 0 40,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -500,000
3. Explanation of above estimates (including long-range effect):
     As written, passage of this bill would provide a Personal Income Tax modification reducing adjusted gross income for amounts paid by a taxpayer for the spaying and neutering of dogs and cats maintained as pets in the taxpayer’s household. The deduction is limited to no more than three companion animals, dogs and cats, per household in any taxable year. The cost of spaying and neutering dogs and cats varies greatly by city and veterinarian. Passage of this bill would reduce General Revenue Fund collections by up to $500,000 per year beginning in FY2016. Due to the lack of an internal effective date, this proposed modification would first become effective for tax years beginning on or after January 1, 2015.
    
     Additional administrative costs to the State Tax Department would be $40,000 for form changes, testing and printing.


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