FISCAL NOTE



FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to extend the termination of a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee from two thousand seven to two thousand thirteen. This bill would result in the extension of decreasing modification for certain retirees receiving pensions from defined pension plans that terminated who are being paid a reduced maximum benefit guarantee from 2007 to 2013. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2008 to 2013. There would be no additional costs to the State Tax Department.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
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 -500,000 -500,000


Explanation of above estimates (including long-range effect):


This bill would result in the extension of decreasing modification for certain retirees receiving pensions from defined pension plans that terminated who are being paid a reduced maximum benefit guarantee from 2007 to 2013. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2008 to 2013. Current law would also require some downward adjustment in benefit level for all affected filers in the event that the total cost should exceed $2 million in a given year. Due to some recent business bankruptcies, the number of filers claiming this modification has expanded significantly over the last two years. There would be no additional costs to the State Tax Department.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us