FISCAL NOTE
Date Requested: January 23, 2015 Time Requested: 12:52 PM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2289 |
Introduced |
HB2253 |
|
CBD Subject: |
Tax |
---|
|
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 reduce state income taxes for state and federal retirees by increasing the exemption on retirement income in calculating the federal gross income for state personal income tax purposes.
Although the stated purpose is to increase the exemption for retirement income for state and federal retirees, the bill, as written, only increases the decreasing modification from $2,000 to $20,000 for federal retirees beginning with Tax Year 2016. Passage of this bill would reduce General Revenue Fund collections by roughly $6.6 million in FY2017. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs to the State Tax Department should be minimal. However, additional litigation by less favored groups could result in an increase in administrative costs to the State Tax Department.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 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 |
-6,600,000 |
Explanation of above estimates (including long-range effect):
The bill, as written, only increases the decreasing modification from $2,000 to $20,000 for federal retirees beginning with Tax Year 2016. Passage of this bill would reduce General Revenue Fund collections by roughly $6.6 million in FY2017. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs to the State Tax Department should be minimal. However, additional litigation by less favored groups could result in an increase in administrative costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov