FISCAL NOTE
Date Requested: February 24, 2015
Time Requested: 02:29 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3265 |
Introduced |
HB3003 |
|
|---|
| 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 continue providing a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
Under current law, retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) receive a personal income tax adjustment equal to the amount of pension income not received through 2014. This bill would extend the allowance of that decreasing modification up through Tax Year 2017. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund in fiscal years 2016, 2017 and 2018.
There would be no additional 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 |
-500,000 |
-500,000 |
Explanation of above estimates (including long-range effect):
Under current law, retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from the federal Pension Benefit Guaranty Corporation (PBGC) receive a personal income tax adjustment equal to the amount of pension income not received through 2014. This bill would extend the allowance of that decreasing modification up through Tax Year 2017. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund in fiscal years 2016, 2017 and 2018.
Current law would also require some downward adjustment in benefit level for all affected filers in the event that the total cost should exceed $2 million in a given year.
There would be no additional costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov