FISCAL NOTE
Date Requested: February 07, 2024
Time Requested: 04:48 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1455 |
Introduced |
HB5134 |
|
|---|
| CBD Subject: |
Real and Personal Property |
|---|
|
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 for a deceased disabled veteran real property exemption for widowed spouses.
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a “disabled veteran taxpayer” in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. “Disabled veteran taxpayer-Eligible Widowed Spouse” is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who was already receiving the disabled veteran real property tax credit. The first tax year for which an eligible “disabled veteran taxpayer” can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were already receiving the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025.
Based on our interpretation, passage of this bill would reduce General Revenue collections by up to $800,000 per year beginning in FY2026.
Additional administrative costs incurred by the State Tax Department will be $1,000 in FY2024.
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 |
1,000 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-800,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a “disabled veteran taxpayer” in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. “Disabled veteran taxpayer-Eligible Widowed Spouse” is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who was already receiving the disabled veteran real property tax credit. The first tax year for which an eligible “disabled veteran taxpayer” can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were already receiving the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025.
Based on our interpretation, passage of this bill would reduce General Revenue collections by up to $800,000 per year beginning in FY2026.
Additional administrative costs incurred by the State Tax Department will be $1,000 in FY2024.
Memorandum
The stated purpose of this bill is to provide for a deceased disabled veteran real property exemption for widowed spouses.
W.Va. Code §11-13MM-4 currently allows a taxpayer deemed to be a “disabled veteran taxpayer” to receive a tax credit entitled the “disabled veteran real property tax credit.” This bill would create the term “disabled veteran taxpayer – Eligible Widowed Spouse.” The term “disabled veteran taxpayer -Eligible Widowed Spouse” creates inconsistencies because only the portion of the term “eligible widowed spouse” is utilized in the amendment to the disabled veteran real property tax credit. The term should either be amended to exclude “disabled veteran taxpayer in W. Va. Code§11-13MM-2 or the entire term should be utilized in W. Va Code §11-13MM-2 and 4.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov