FISCAL NOTE
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 provide West Virginia residents a personal tax exemption of $12,500 for individuals and $25,000 for married couples.
As written, this bill would increase the amount of each personal exemption for individuals from $2,000 to $12,500 and would increase the amount of each personal exemption for married couples from $2,000 to $25,500. According to our interpretation, passage of this bill would reduce the General Revenue Fund by roughly $398 million in Fiscal Year 2007 and by roughly $956 million for each year thereafter.
Additional administrative costs to the State Tax Department would be minimal.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2006 Increase/Decrease (use"-") |
2007 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 |
-398,000,000 |
-956,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would increase the amount of each personal exemption for individuals from $2,000 to $12,500 and would increase the amount of each personal exemption for married couples from $2,000 to $25,500. According to our interpretation, passage of this bill would reduce the General Revenue Fund by roughly $398 million in Fiscal Year 2007 and by roughly $956 million for each year thereafter.
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us