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 increase the exemption on retirement income from taxation on persons age 65 years of age or older or a surviving spouse of such persons from $8,000 to $15,000 a year.
The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $15,000, effective for tax years beginning after December 31, 2008. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $31.0 million beginning in Tax Year 2009. There would be a small loss in FY2009 due to changes in estimated payments.
There would be no additional administrative costs.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2009 Increase/Decrease (use"-") |
2010 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 |
-31,000,000 |
-31,000,000 |
Explanation of above estimates (including long-range effect):
The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $15,000, effective for tax years beginning after December 31, 2008. This increase in the decreasing modification allowed would result in a loss to the General Revenue Fund of roughly $31.0 million beginning in Tax Year 2009. There would be a small loss in FY2009 due to changes in estimated payments. Costs will rise significantly after 2011 when baby-boomers begin to qualify for this modification.
There would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us