FISCAL NOTE
Date Requested: February 25, 2025
Time Requested: 02:40 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3413 |
Introduced |
HB2946 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
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 from personal income tax West Virginia campus police officer retirement income, after July 1, 2025, including any survivorship annuities, to the extent included in gross income for federal income tax purposes for the taxable year.
As written, this bill allows a full Personal Income Tax exclusion for retirement benefits received by campus police officers. The bill exempts retirement benefits received by campus police officers from any retirement system, including any retirement plan sponsored by institutions of higher education. We cannot quantify the revenue loss associated with this bill beginning in Tax Year 2026, but the loss would not be significant. There are roughly 160 campus police officers currently employed at colleges and universities in the State.
In addition to providing a decreasing modification for retirement benefits of campus police, the bill also moves the decreasing modification for Social Security benefits outside of the alternative $8,000 income modification calculation requirements. This change would result in a revenue loss of roughly $42.3 million annually beginning in Tax Year 2025.
Additional administrative costs would be $29,150 in FY2025 and $27,450 in 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 |
29,150 |
27,450 |
27,450 |
| Personal Services |
11,000 |
27,450 |
27,450 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
1,650 |
0 |
0 |
| Other |
16,450 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-42,300,000 |
-42,300,000 |
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.
As written, this bill allows a full Personal Income Tax exclusion for retirement benefits received by campus police officers. The bill exempts retirement benefits received by campus police officers from any retirement system, including any retirement plan sponsored by institutions of higher education. We cannot quantify the revenue loss associated with this bill beginning in Tax Year 2026, but the loss would not be significant. There are roughly 160 campus police officers currently employed at colleges and universities in the State.
In addition to providing a decreasing modification for retirement benefits of campus police, the bill also moves the decreasing modification for Social Security benefits outside of the alternative $8,000 income modification calculation requirements. This change would result in a revenue loss of roughly $42.3 million annually beginning in Tax Year 2025.
Additional administrative costs would be $29,150 in FY2025 and $27,450 in subsequent fiscal years.
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