FISCAL NOTE
Date Requested: March 04, 2025
Time Requested: 05:07 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1208 |
Introduced |
SB668 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify the participation requirement for the volunteer firefighter tax credit.
According to our interpretation, this bill clarifies a definition to specify an active member has participated in at least 30 percent of annual emergency calls or department meetings. The volunteer firefighter tax credit was claimed on 1,421 tax returns in FY2024 for a total of $1.4 million. The number of eligible claimants beginning in Tax Year 2026 could increase substantially. If all eligible claimants took the credit, an additional decrease the State General Revenue could be up to $7.8 million in FY2027 and subsequent fiscal years. Although a taxpayer may be eligible, they may not have the tax liability to claim the full amount of the credit. Some volunteer firefighters may not qualify every year because they may not have a full year of service.
There would be administrative costs to the State Tax Department in FY2026 of $29,150 to update the credit schedule and instructions for taxpayers and for personnel to development and test the tax system. Personnel costs in subsequent years would be $11,000 to administer and review the tax credit.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
29,150 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-7,800,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
According to our interpretation, this bill clarifies a definition to specify an active member has participated in at least 30 percent of annual emergency calls or department meetings. The volunteer firefighter tax credit was claimed on 1,421 tax returns in FY2024 for a total of $1.4 million. The number of eligible claimants beginning in Tax Year 2026 could increase substantially. If all eligible claimants took the credit, an additional decrease the State General Revenue could be up to $7.8 million in FY2027 and subsequent fiscal years. Although a taxpayer may be eligible, they may not have the tax liability to claim the full amount of the credit. Some volunteer firefighters may not qualify every year because they may not have a full year of service.
There would be administrative costs to the State Tax Department in FY2026 of $29,150 to update the credit schedule and instructions for taxpayers and for personnel to development and test the tax system. Personnel costs in subsequent years would be $11,000 to administer and review the tax credit.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov