FISCAL NOTE
Date Requested: February 02, 2024
Time Requested: 03:55 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1846 |
Introduced |
HB5215 |
|
|---|
| CBD Subject: |
State Personnel |
|---|
|
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 the bill is to provide a personal income tax exemption to all volunteer firefighters who are active on 75% of all activities and calls.
The proposed bill would allow volunteer firefighters who are active in 75 percent of all activities and calls at that volunteer fire department to be exempt from Personal Income Tax. We are unable to estimate the revenue loss from the passage of this bill. The bill, as written, exempts all income earned by the volunteer firefighters who meet the qualifications. No data is available on the income earned by these firefighters.
Additional administrative costs to the State Tax Department would be $20,000 in FY2025 and $10,000 in subsequent fiscal years.
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 |
20,000 |
10,000 |
| Personal Services |
0 |
10,000 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
10,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The proposed bill would allow volunteer firefighters who are active in 75 percent of all activities and calls at that volunteer fire department to be exempt from Personal Income Tax. We are unable to estimate the revenue loss from the passage of this bill. The bill, as written, exempts all income earned by the volunteer firefighters who meet the qualifications. No data is available on the income earned by these firefighters.
Additional administrative costs to the State Tax Department would be $20,000 in FY2025 and $10,000 in subsequent fiscal years.
Memorandum
The stated purpose of the bill is to provide a personal income tax exemption to all volunteer firefighters who are active on 75% of all activities and calls.
Article X, Section 1 of the W. Va. Constitution taxation requires to be equal and uniform throughout the State. Although the Constitution allows the legislature "to classify and graduate the tax on all incomes according to the amount thereof and to exempt from taxation, incomes below a minimum to be fixed from time to time," it does not authorize the exemption of incomes of any particular group or incomes derived from any particular activity.
In addition, the language of the bill is vague. It is unclear what constitutes activities and calls or how the 75 percent threshold is to be determined.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov