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 allow members of volunteer fire departments who have successfully completed required training and who have two years of service to exempt five hundred dollars from their gross income, for state personal income tax purposes. Passage of this bill would reduce General Revenue Fund collections by approximately $260,000 per year beginning in Fiscal Year 2009-2010. Absent an internal effective date, the provisions of this bill would become effective for the 2009 tax year. If all returns are accepted as filed, there would be a minimal increase in administrative 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 -260,000 -260,000


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


A $500 deduction for qualified volunteer firefighters would cost the State approximately $260,000 per year. According to available State data, over 11,500 volunteers may qualify for this exemption. If all returns are accepted as filed, there would be a minimal increase in administrative costs to the State Tax Department.



Memorandum






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