FISCAL NOTE
Date Requested: February 18, 2025
Time Requested: 04:31 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2603 |
Introduced |
HB2538 |
|
|---|
| 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.
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 exempt retirement benefits received by Natural Resources Police Officers from West Virginia personal income tax.
As written, this bill allows a full Personal Income Tax exclusion for retirement benefits received by Natural Resources police officers under the DNR Retirement System. Individuals receiving annuity benefits from the DNR Retirement System already receive a full income tax exclusion for such benefit payments. Passage of this bill would provide this small group of retirees with preferential tax treatment over other federal, state and local police retirees by moving such exclusion to a new section outside of the alternative $8,000 income modification calculation requirements for other pension exclusions.
Additional administrative costs would be $5,500 in FY2026.
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 |
5,500 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
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.
As written, this bill allows a full Personal Income Tax exclusion for retirement benefits received by Natural Resources police officers under the DNR Retirement System. Individuals receiving annuity benefits from the DNR Retirement System already receive a full income tax exclusion for such benefit payments. Passage of this bill would provide this small group of retirees with preferential tax treatment over other federal, state and local police retirees by moving such exclusion to a new section outside of the alternative $8,000 income modification calculation requirements for other pension exclusions.
Additional administrative costs would be $5,500 in FY2026.
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