FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 08:00 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1664 |
Introduced |
HB2121 |
|
|---|
| CBD Subject: |
Real and Personal Property |
|---|
|
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.
The stated purpose of this bill is to provide for a deceased disabled veteran real property exemption for widowed spouses.
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a “Disabled veteran taxpayer” in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. “Disabled veteran taxpayer-Eligible Widowed Spouse” is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible “Disabled veteran taxpayer” can receive the credit is tax year 2024.
Given that the proposed changed would apply only to surviving spouses of a veteran who had received the tax credit in 2024 or later, the initial loss of revenue associated with the change would be minimal. The surviving spouses of disabled veterans who had passed away prior to the timing of this credit do not qualify.
Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
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 |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a “Disabled veteran taxpayer” in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. “Disabled veteran taxpayer-Eligible Widowed Spouse” is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible “Disabled veteran taxpayer” can receive the credit is tax year 2024.
Given that the proposed changed would apply only to surviving spouses of a veteran who had received the tax credit in 2024 or later, the initial loss of revenue associated with the change would be minimal. The surviving spouses of disabled veterans who had passed away prior to the timing of this credit do not qualify.
Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov