FISCAL NOTE
Date Requested: January 24, 2024
Time Requested: 04:02 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1268 |
Introduced |
SB298 |
|
|---|
| 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.
The stated purpose of this bill is to provide a tax credit for 50% of the cost of a lifetime hunting, trapping, and fishing license for veterans who have been honorably discharged from the armed services and who are certified by the Veterans Administration as not less than 50% totally disabled.
According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license, even though the stated purpose says 50 percent. The bill does not include the 50 percent language. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $280,000 a year beginning in FY2026. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2025.
Additional administrative costs to the State Tax Department would be $37,500 for FY2025 and $5,000 for 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 |
37,500 |
5,000 |
| Personal Services |
0 |
22,500 |
5,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-280,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the proposed bill would create a non-refundable Personal Income Tax credit for veterans that purchase a lifetime hunting, trapping, and fishing license. The amount of credit is equal to the amount paid by the eligible veteran for a West Virginia resident lifetime hunting and fishing license, even though the stated purpose says 50 percent. The bill does not include the 50 percent language. Based on our interpretation, the passage of the proposed legislation would result in a loss in General Revenue collections of up to $280,000 a year beginning in FY2026. Absent an effective date, the Personal Income Tax provisions of this bill would be in effect beginning in Tax Year 2025.
Additional administrative costs to the State Tax Department would be $37,500 for FY2025 and $5,000 for subsequent fiscal years.
Memorandum
The stated purpose of this bill is to provide a tax credit for 50% of the cost of a lifetime hunting, trapping, and fishing license for veterans who have been honorably discharged from the armed services and who are certified by the Veterans Administration as not less than 50% totally disabled.
The bill states the credit is for veterans who are at least 50% disabled, while the title and bill itself do not mention the disability requirement. Further, the title states this bill pertains to, “requiring that disabled veterans obtain a hunting, trapping, and fishing license.” However, the language in W. Va. Code §20-2-28 granting the privilege of license exemption to these individuals is left intact in this version of the bill, giving rise to a title defect.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov