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 provide a personal income tax credit to parents or legal guardians who provide home schooling for their children. The tax credit will be effective upon the completion of a school year and available at a rate per child of $500 for each year of home schooling.
As written, this bill would create a tax credit for tax years beginning after December 31, 2013 for any parent or legal guardian who is a resident of West Virginia in the amount of $500 per child for providing home schooling pursuant to the educational requirements set by the State Board of Education for primary and secondary programs and standards. Further, the bill would prohibit the State Board of Education from creating any additional regulations over the education of a child whose parent or legal guardian receives a tax credit for home schooling.
Passage of this bill would result in a General Revenue Fund decline of approximately $4.0 million per year beginning in FY 2015. Additional administrative costs to the State Tax Department would be approximately $50,000 in FY 2015.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
50,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
50,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-4,000,000 |
-4,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would create a tax credit for tax years beginning after December 31, 2013 for any parent or legal guardian who is a resident of West Virginia in the amount of $500 per child for providing home schooling pursuant to the educational requirements set by the State Board of Education for primary and secondary programs and standards. Further, the bill would prohibit the State Board of Education from creating any additional regulations over the education of a child whose parent or legal guardian receives a tax credit for home schooling.
Home school enrollment for the 2012-2013 school year totaled 8,081.
Passage of this bill would result in a General Revenue Fund decline of approximately $4.0 million per year beginning in FY 2015. Additional administrative costs to the State Tax Department would be approximately $50,000 in FY 2015.
Additional administrative costs to the State Tax Department would be approximately $50,000 in FY 2015 for the programming, testing, and implementation costs associated with the reporting requirements of the bill.
Memorandum
The stated purpose of this bill is to provide a personal income tax credit to parents or legal guardians who provide home schooling for their children. The tax credit will be effective upon the completion of a school year and available at a rate per child of $500 for each year of home schooling.
For consistency purposes and clarity the bill should be amended to include language that clearly provides that the “home schooling” or “home instruction” basis for the tax credit must meet the requirements of W.Va. Code §18-8-1. There is no requirement that the home schooling or private schooling take place in West Virginia. Separated or divorced parents could receive the credit for schooling in other states while they reside in West Virginia.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov