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 a tax deduction for all prepaid tuition contracts or college savings plan regardless of whether they are administered by the board of the college prepaid tuition and savings program.
The State Tax Department does not possess sufficient information on investments in prepaid tuition contracts and investments in other college savings plans authorized by 26 U.S.C. §529 to accurately estimate the loss to the State General Revenue Fund from passage of this bill. However, the impact of the proposed expansion would likely be on scale with the estimated $1.5 million annual cost associated with the State-sponsored programs.
If all returns were accepted as filed, there would be no additional administrative cost to the State Tax Department.
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The State Tax Department does not possess sufficient information on investments in prepaid tuition contracts and investments in other college savings plans authorized by 26 U.S.C. §529 to accurately estimate the loss to the State General Revenue Fund from passage of this bill. Currently, a decreasing modification is allowed for payments made to the West Virginia Prepaid Tuition Trust Fund administered through the West Virginia State Treasurer’s Office. However, the impact of the proposed expansion would likely be on scale with the estimated $1.5 million annual cost associated with the State-sponsored programs.
If all returns were accepted as filed, there would be no additional administrative cost to the State Tax Department
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us