Date Requested:January 31, 2014
Time Requested:12:54 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1986 Introduced HB4387
CBD Subject: VOLUNTEER FIREMAN
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 members of volunteer fire departments who have successfully completed required training, a credit of $500 from their state personal income tax.
    
     The proposed bill states that any member of a volunteer fire department who has successfully completed minimum required training and has attended at least five emergency calls for a taxable year will be entitled to a $500 credit against his or her Personal Income Tax for that tax year. Based on available information on training, the passage of this bill would result in a loss to the General Revenue Fund of roughly $4.2 million per year beginning in FY2016. Due to the lack of an internal effective date, this bill would not become effective until the 2015 tax year.
    
     Additional administrative costs to the State Tax Department would be roughly $50,000 in FY2016 and roughly $40,000 per year each year thereafter.

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 50,000
Personal Services 0 0 0
Current Expenses 0 0 50,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -4,200,000
3. Explanation of above estimates (including long-range effect):
     Passage of this bill would allow active and auxiliary members of volunteer fire departments and rescue squads who have successfully completed required training and who have attended at least five emergency calls during the year a tax credit of $500 from their West Virginia Personal Income Tax.
    
     The proposed bill states that any member of a volunteer fire department who has successfully completed minimum required training and has attended at least five emergency calls for a taxable year will be entitled to a $500 credit against his or her Personal Income Tax for that tax year. West Virginia Volunteer Fire Departments do not track the number of emergency calls attended by each member. Due to lack of necessary information, the State Tax Department assumes that the volunteer fire department members who have successfully completed minimum required training would also have attended at least five emergency calls for taxable year. Based on available information on training, the passage of this bill would result in a loss to the General Revenue Fund of roughly $4.2 million per year beginning in FY2016. Due to the lack of an internal effective date, this bill would not become effective until the 2015 tax year. According to available information, roughly 8,400 volunteer fire department members have the training credentials that would qualify them for the proposed tax credit.
    
     Additional administrative costs to the State Tax Department would be roughly $50,000 in FY2016 and roughly $40,000 per year each year thereafter.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to allow members of volunteer fire departments who have successfully completed required training, a credit of $500 from their state personal income tax.
    
     As written, the bill states “An active member and auxiliary member of a volunteer fire department and rescue squad is entitled to a $500 credit ...” However, definitions for the terms “auxiliary” and “rescue squad” are not provided in the bill, in other sections of the West Virginia Code, or in W. Va. Legislative Rule 87CSR8 [Volunteer Fire Fighters’ Training, Equipment, and Operating Standards].
    
     In addition to a training requirement, the bill indicates that in order to qualify for the tax credit, the member is “to have attended at least 5 emergency calls during the year.” The term “attended” may by subject to varying interpretations ranging from active assistance to merely being present as an off-duty onlooker.