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 promote the retention of nursing education faculty by providing them a tax deduction of $3,500 per year.
According to our interpretation, the tax incentive proposed in the bill would be a Personal Income Tax decreasing modification to federal adjusted gross income of up to $3,500 for full time nursing education faculty. 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. Based upon available information, passage of this bill would reduce General Revenue Fund collections by roughly $60,000 per year beginning in Fiscal Year 2016.
Additional administrative costs to the State Tax Department associated with passage of this bill would be $10,000.
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 |
0 |
10,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
10,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-60,000 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to promote the retention of nursing education faculty by providing them a tax deduction of $3,500 per year.
According to our interpretation, the tax incentive proposed in the bill would be a Personal Income Tax decreasing modification to federal adjusted gross income of up to $3,500 for full time nursing education faculty. 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. Based upon available information, roughly 270 nursing education faculty would be eligible for the proposed decreasing modification resulting in a reduction in General Revenue Fund collections of roughly $60,000 per year beginning in Fiscal Year 2016.
Additional administrative costs to the State Tax Department associated with passage of this bill would be $10,000.
Memorandum
The stated purpose of this bill is to promote the retention of nursing education faculty by providing them a tax dedication of $3,500 per year.
As written, the bill provides a definition of “full-time nursing faculty member” that references a Higher Education Policy Commission Procedural Rule and includes the following statement: “Full-time Faulty [sic] as a faculty member for a full academic year (at least nine month contract basis) for at least six semester credit hours teaching per semester or the equivalent in teaching, research, public service, and/or administrative responsibilities.” However, the bill also includes the statement “The tax deduction is only available to nursing faculty actively engaged in the practice of teaching during the tax year in which it is granted.” The difference in definition of “full-time nursing faculty member” and those qualifying for the tax deduction along with the difference between an “academic year” and a “tax year” may lead to administrative issues and to greater administrative costs for both the State Tax Department and nursing education faculty in the verification of Taxpayers eligible for the tax incentive.
The bill also provides a definition of “Institution of higher education located within West Virginia” that “means both public and private educational facilities that offer a nursing curriculum for students seeking to become licensed as nursing professionals pursuant to section two, article seven, chapter thirty of this code.” The cited W. Va. Code section concerns registered professional nurses. It is unclear whether the curriculum taught applies only to eligibility for initial licensing or to curriculum leading to an "advanced practice" designation for previously licensed professional nurses.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov