FISCAL NOTE
FUND(S):
Lottery Funds
Sources of Revenue:
Other Fund Lottery Funds
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 increase the homestead exemption for low-income taxpayers who qualify for the homestead exemption for ad valorem property taxation purposes by ten thousand dollars.
There would be no revenue impact in FY2010 and beyond because the tax credit benefit is already based on $20,000 of taxable valuation. However, the bill makes the increase in the tax credit retroactive to Tax Year 2003. As a result, there would be one-time revenue loss in FY2009 of up to $15.0 million.
Additional costs due to amended returns would be approximately $26,000 in FY2008 and $18,000 in FY2009.
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 |
26,000 |
18,000 |
0 |
| Personal Services |
14,000 |
14,000 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
12,000 |
4,000 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-15,000,000 |
0 |
Explanation of above estimates (including long-range effect):
There would be no revenue impact in FY2010 and beyond because the tax credit benefit is already based on $20,000 of taxable valuation. However, the bill makes the increase in the tax credit retroactive to Tax Year 2003. As a result, there would be one-time revenue loss in FY2009 of up to $15.0 million.
Additional costs due to amended returns would be approximately $26,000 in FY2008 and $18,000 in FY2008.
Memorandum
The stated purpose of this bill is to increase the homestead exemption for low-income taxpayers who qualify for the homestead exemption for ad valorem property taxation purposes by ten thousand dollars.
The bill does not affect the homestead exemption. The bill increases the Senior Citizens’ Tax Credit which is based upon the taxpayer being allowed to use a $20,000 homestead exemption.
The bill, as written, only changes the amount for the Senior Citizens’ Tax Credit; it does not change the date in that section of the Code. This means that taxpayers may claim a credit for the new amount back to January 1, 2003 and will result in numerous amended returns.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us