Date Requested:February 16, 2005
Time Requested:01:16 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R305 Intro SB79
CBD Subject: Conservation Officers Exempt from Income
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

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

    The stated purpose of this bill is to add retirement income of conservation officers received through the West Virginia Public Employees Retirement System to modifications reducing the federal adjusted gross income.
    
    According to our interpretation and assuming that indicated change is effective for taxable years beginning after December 31, 2005, passage of this bill would reduce General Revenue Fund collections by roughly $40,000 per year beginning in Fiscal Year 2006-2007.
    
    The provisions of this bill would apply to an estimated 50 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
    
    There would be no additional administrative costs to the Tax Department.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
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 0 -40,000
3. Explanation of above estimates (including long-range effect):
    The provisions of this bill would create a full pension exclusion for pensions and annuities paid to “persons who on the last day of employment prior to retirement were employed as full-time salaried conservation officers” under the West Virginia public employees retirement system. Passage of this bill, as currently written, would result in a decrease in the General Revenue Fund of roughly $40,000 per year beginning in Fiscal Year 2006-2007. The provisions of this bill would apply to an estimated 50 retired conservation officers. However, other similarly situated retirees may also seek the same special tax treatment.
    
    There would be no additional administrative costs to the Tax Department.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to add retirement income of conservation officers received through the West Virginia Public Employees Retirement System to modifications reducing the federal adjusted gross income.
    
    Proposed W. Va. Code §11-21-12(g)(3) provides that “changes in the language of this section enacted in the year two thousand four relating to retirement benefits of full-time salary conservation officers shall apply to taxable years beginning after the thirty-first day of December, two thousand five.” The reference to changes in 2004 may result in some confusion as to the effective date of the proposal.