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 continue providing 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. The original enactment of this section contained a sunset provision that terminated the tax adjustment on January 1, 2007.
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 2012. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2008 to 2012.
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 2012. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2008 to 2012. 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