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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled, for the next three years. The bill, as written, increases the modification for senior citizens and persons who are totally and permanently disabled from $8,000 to $20,000 over a three-year period. The revenue losses would be as follows: Fiscal Maximum Revenue Year Modification Loss 2010 $12,000 $18.6 million 2011 $16,000 $37.3 million 2012 $20,000 $57.1 million There would be a small loss in FY2009 due to changes in estimated payments. Costs will rise significantly after 2012 as more baby-boomers begin to qualify for this modification. There would be no additional administrative costs.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	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	-18,600,000	-57,100,000

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 $20,000 over a three-year period. The revenue losses would be as follows: Fiscal Maximum Revenue Year Modification Loss 2010 $12,000 $18.6 million 2011 $16,000 $37.3 million 2012 $20,000 $57.1 million There would be a small loss in FY2009 due to changes in estimated payments. Costs will rise significantly after 2012 as more 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