FISCAL NOTE
Date Requested: January 30, 2026
Time Requested: 06:04 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1593 |
Introduced |
HB5007 |
|
|---|
| CBD Subject: |
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.
The stated purpose of this bill is to create an income tax exemption for memberships to gyms in West Virginia and to set the exemption at $60 per month with a total of $720 per year.
According to our interpretation, this bill would create a decreasing modification for gym memberships. The average gym membership in West Virginia costs $47 per month or $568 per year. Nationally, 20 percent of the U.S. population have gym memberships. Passage of this bill would reduce General Revenue Fund collections by nearly $4.0 million per year in FY2028 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $40,650 in FY2027 and $22,500 per year in FY2028 and thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
40,650 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| Current Expenses |
0 |
1,650 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-4,000,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would create a decreasing modification for gym memberships. The average gym membership in West Virginia costs $47 per month or $568 per year. Nationally, 20 percent of the U.S. population have gym memberships. Passage of this bill would reduce General Revenue Fund collections by nearly $4.0 million per year in FY2028 and thereafter.
Additional administrative costs incurred by the State Tax Department would be $40,650 in FY2027 and $22,500 per year in FY2028 and thereafter.
Memorandum
The stated purpose of this bill is to create an income tax exemption for memberships to gyms in West Virginia and to set the exemption at $60 per month with a total of $720 per year.
This bill attempts to create an exemption, which usually exempts a type of income from being subject to Personal Income Tax. However, there is no type of income being exempted by the bill. This bill would most likely function as a decreasing modification against federal adjusted gross income. This language should be changed to avoid confusion.
The bill lacks any definition for “gym” or “membership” and does not specify whether the proposed decreasing modification applies per taxpayer or per return.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov