FISCAL NOTE
Date Requested: February 13, 2025
Time Requested: 04:30 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2011 |
Introduced |
SB429 |
|
|---|
| CBD Subject: |
Natural Resources; 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.
Although the stated purpose of the bill states the bill provides for a 50 percent credit for the cost of a lifetime license from the Department of Natural Resources (DNR) for veterans who are not less than 50 percent disabled, the proposed bill would actually create a non-refundable Personal Income Tax credit for all veterans, whether disabled or not, that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to half the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $2.3 million in FY2027 and less than $60,000 a year for subsequent fiscal years. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2026.
Additional administrative costs to the State Tax Department would be $29,150 for FY2026 and $11,000 for subsequent fiscal years.
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 |
-2,300,000 |
-60,000 |
Explanation of above estimates (including long-range effect):
Although the stated purpose of the bill states the bill provides for a 50 percent credit for the cost of a lifetime license from the Department of Natural Resources (DNR) for veterans who are not less than 50 percent disabled, the proposed bill would actually create a non-refundable Personal Income Tax credit for all veterans, whether disabled or not, that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to half the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $2.3 million in FY2027 and less than $60,000 a year for subsequent fiscal years. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2026.
Our estimates were based on the number of veterans in West Virginia who are under sixty-five and not totally and permanently disabled, the percentage of hunters and fishermen in the West Virginia population based on DNR statistics and the assumption that only 50 percent of the veterans would take advantage of this credit. Based on our assumption, there would be significant cost in the first year and a not significant cost in the subsequent years as new veterans take advantage of the credit.
Additional administrative costs to the State Tax Department would be $29,150 for FY2026 and $11,000 for subsequent fiscal years. The costs associated with this bill include the creation of new credit schedules with instructions, development of new credit in the tax system, efforts to prevent fraud, and personnel costs with administering the credit.
Memorandum
The stated purpose of this bill is to provide a tax credit for 50% of the cost of a lifetime hunting, trapping, and fishing license for veterans who have been honorably discharged from the armed services and who are certified by the Veterans Administration as not less than 50% totally disabled.
While the bill’s stated purpose states the credit is for veterans who are at least 50 percent disabled, the bill itself does not mention the disability requirement. Further, the title states this bill pertains to, “requiring that disabled veterans obtain a hunting, trapping, and fishing license.” However, the language in W. Va. Code §20-2-28 granting the privilege of license exemption to these individuals is left intact in this version of the bill, giving rise to a title defect.
The definition of “eligible veteran” and all other provisions of this bill lack any references to disability despite the stated purpose and title of this bill specifically referencing disabled veterans.
It is unclear if written the bill would require that the license purchased be a combination hunting, fishing, and trapping license and would not apply to separate lifetime hunting, fishing, or trapping licenses allowed under §20-2B-1 et seq. This ambiguity is created by the use of inconsistent terms referring to the license in question. The phrases “lifetime hunting, fishing, and trapping license,” “lifetime hunting and fishing license,” and “any combination hunting, trapping, and fishing license” are used seemingly interchangeably.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov