FISCAL NOTE
Date Requested: January 10, 2024
Time Requested: 08:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2019 |
Introduced |
HB4445 |
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| CBD Subject: |
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FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to simplify the manner in which a low-income senior citizen may claim certain tax credits.
According to our interpretation, the bill seeks to allow senior citizens who are eligible for the Senior Citizen’s property tax credit on the first $20,000 of taxable assessed value and the refundable credit for excess property taxes paid to receive the credits without having to file a Personal Income Tax return. The bill proposes that this be accomplished by amending the form the Department of Tax and Revenue sends to seniors who own real property.
Based on our interpretation, passage of the bill would have no impact on General Revenue Fund collections. The West Virginia Tax Division currently has in place a method for low-income Senior Citizens to apply for the credits without filing a West Virginia Personal Income Tax return.
There would be no additional costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the bill seeks to allow senior citizens who are eligible for the Senior Citizen’s property tax credit on the first $20,000 of taxable assessed value and the refundable credit for excess property taxes paid to receive the credits without having to file a Personal Income Tax return. The bill proposes that this be accomplished by amending the form the Department of Tax and Revenue sends to seniors who own real property.
Based on our interpretation, passage of the bill would have no impact on General Revenue Fund collections. The West Virginia Tax Division currently has in place a method for low-income Senior Citizens to apply for the credits without filing a West Virginia Personal Income Tax return.
There would be no additional costs incurred by the State Tax Department.
Memorandum
The stated purpose of this bill is to simplify the manner in which a low-income senior citizen may claim certain tax credits.
The bill does not accomplish its purpose. Some of the requirements set forth in the bill do not correspond to the requirements set forth in W.Va. Code §§11-21-21 and 23 regarding entitlement to these credits.
The bill establishes another method to apply for the personal income tax credits set forth in W.Va. Code §11-21-21 and §11-21-23. Currently, an amended return, also called a claim for refund, is used to apply for these credits. This bill provides that the Department of Tax and Revenue shall amend “the form” it sends to seniors who own real property by adding a certification that if the individual or couple are not required to file and income tax return, they can apply for the credits by returning the certificate to the Department of Tax and Revenue.
The language in the bill would affect entitlement to these credits as well as treat taxpayers filing pursuant to the bill’s proposed method differently than those filing a claim for refund. The proposed bill has a requirement that no one else live in the home besides the senior individual or couple; this language is not found in the code for either credit. In fact, W.Va. Code §11-21-21 references the federal poverty guidelines, which is based on the number of household members while W.Va. Code §11-21-23 refers to “gross household income”.
Without a claim for refund, it is not clear upon what information the credit would be calculated. This bill anticipates that the Department of Tax and Revenue knows when to send the certification and how much credit the taxpayer is entitled to once the Senior has returned the certification.
Also, there is a limitation in the current languages for both credits that if the refund is less than $10, it will not be refunded. This language is absent in the proposed bill.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov