FISCAL NOTE
Date Requested: February 19, 2025
Time Requested: 04:33 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1959 |
Introduced |
HB2604 |
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| CBD Subject: |
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FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to reinstate 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) are eligible to receive a personal income tax adjustment equal to the amount of pension income not received for tax years between 2020 and 2027. The provisions of this bill seek to terminate the decreasing modification beginning with Tax Year 2027. Based on our interpretation, passage of this bill would have no effect on the General Revenue Fund for FY2025 through FY2027 as it is already in Code through those years. It would increase the General Revenue fund by up to $180,000 in FY2028.
There would be no additional administrative costs.
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 |
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 |
180,000 |
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) are eligible to receive a personal income tax adjustment equal to the amount of pension income not received for tax years between 2020 and 2027. The provisions of this bill seek to terminate the decreasing modification beginning with Tax Year 2027. Based on our interpretation, passage of this bill would have no effect on the General Revenue Fund for FY2025 through FY2027 as it is already in Code through those years. It would increase the General Revenue fund by up to $180,000 in FY2028.
There would be no additional administrative costs.
Memorandum
The stated purpose of this bill is to reinstate 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.
A similar bill passed in 2023 that extended the modification to 2028. This is not a reinstatement. The bill reduces the period that modification can be taken to tax years beginning before January 1, 2027.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov