Sources of Revenue:

General Fund,Other Fund Clean Election Fund

Legislation creates:

A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

The stated purpose of this bill is to create a system for public funding of election campaigns for candidates who agree to, and do abide by restrictions on campaign contributions from private sources and campaign spending. Provisions of this bill include two new tax check off programs. The first is to be developed by the Tax Commissioner allowing a taxpayer to designate that up to $3 of “taxes” be deposited into the Clean Elections Fund. This check off would not be a donation from a refund but a direction by the taxpayer that $3 in taxes be directed to the Clean Election Fund upon appropriation from the General Fund to the Clean Election Fund. The second check off, developed by the Tax Commissioner, allows any taxpayer to donate a portion of the taxpayer’s state income tax refund. Taxpayers not having a tax refund due, or who wish to make a contribution in excess of any tax refund amount may make a contribution to the fund by so designating the contribution on the state personal income tax return form and remitting the contribution with the tax return. Based upon similar programs in the United States, the Tax Department estimates that General Revenue Fund collections could decrease by $250,000 or more due to revenue transfers to the Clean Election Fund. If just eight percent of West Virginia individual income tax filers opt to designate $3 ($6 for married couples) of State General Revenue to the Clean Election Fund, total General Revenues would decrease by roughly $250,000 per year. Additional administrative costs to the Tax Department associated with this bill would be minimal.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2005 Increase/Decrease (use"-")	2006 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	-250,000	-250,000

Explanation of above estimates (including long-range effect):

Provisions of this bill include two new tax check off programs. The first is to be developed by the Tax Commissioner allowing a taxpayer to designate that up to $3 of “taxes” be deposited into the Clean Elections Fund. This check off would not be a donation from a refund but a direction by the taxpayer that $3 in taxes be directed to the Clean Election Fund upon appropriation from the General Fund to the Clean Election Fund. Based upon similar programs in the United States, the Tax Department estimates that General Revenue Fund collections could decrease by $250,000 or more due to revenue transfers to the Clean Election Fund. If just eight percent of West Virginia individual income tax filers opt to designate $3 ($6 for married couples) of State General Revenue to the Clean Election Fund, total General Revenues would decrease by roughly $250,000 per year. The second check off, developed by the Tax Commissioner, allows any taxpayer to donate a portion of the taxpayer’s state income tax refund. Taxpayers not having a tax refund due, or who wish to make a contribution in excess of any tax refund amount may make a contribution to the fund by so designating the contribution on the state personal income tax return form and remitting the contribution with the tax return. This second checkoff would have no impact on the General Revenue Fund. Additional administrative costs to the Tax Department associated with this bill would be minimal.

Memorandum

Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us