FISCAL NOTE
FUND(S):
Medicaid State Share Fund
Sources of Revenue:
Special 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 establish a tax credit for medical providers who provide services at no charge to free health clinics in the state. The bill sets the amount of tax credit and authorizes the Tax Commissioner to promulgate rules.
As written, this bill would provide a tax credit of 10 percent of adjusted annual income (5% for an eligible taxpayer employed by the State, its agencies or subdivisions or an eligible taxpayer organization pursuant to coverage under W. Va. Code §29-12 et al). The proposed tax credit would be for tax years beginning after December 31, 2010 and would be used to offset the Health Care Provider Tax levied on physicians’ services as levied via W. Va. Code §11-27-16. The State Tax Department does not have access to data on medical providers who provide services at no charge to free health clinics. However, since the Health Care Provider Tax levied on physicians’ services is scheduled to be eliminated effective July 1, 2010 (i.e., before the effective date of the proposed tax credit), the eligible taxpayers, as defined in the bill, would have no Health Care Provider Tax liability against which the proposed tax credit could be applied. It is our interpretation that passage of this bill, as written, would have no revenue impact.
There would be no additional administrative costs to the State Tax Department associated with this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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):
As written, this bill would provide a tax credit of 10 percent of adjusted annual income (5% for an eligible taxpayer employed by the State, its agencies or subdivisions or an eligible taxpayer organization pursuant to coverage under W. Va. Code §29-12 et al). The proposed tax credit would be for tax years beginning after December 31, 2010 and would be used to offset the Health Care Provider Tax levied on physicians’ services as levied via W. Va. Code §11-27-16. The State Tax Department does not have access to data on medical providers who provide services at no charge to free health clinics. However, since the Health Care Provider Tax levied on physicians’ services is scheduled to be eliminated effective July 1, 2010 (i.e., before the effective date of the proposed tax credit), the eligible taxpayers, as defined in the bill, would have no Health Care Provider Tax liability against which the proposed tax credit could be applied. It is our interpretation that passage of this bill, as written, would have no revenue impact.
There would be no additional administrative costs to the State Tax Department associated with this bill.
Memorandum
The stated purpose of this bill is to establish a tax credit for medical providers who provide services at no charge to free health clinics in the state. The bill sets the amount of tax credit and authorizes the Tax Commissioner to promulgate rules.
As written, this bill would provide a tax credit of 10 percent of adjusted annual income (5% for an eligible taxpayer employed by the State, its agencies or subdivisions or an eligible taxpayer organization pursuant to coverage under W. Va. Code §29-12 et al). However, the bill does not define “adjusted annual income.” Additionally, the bill does not apparently specify any relationship between the amount of time providing services at no charge and the amount of credit. That is, one hour of service at no charge could earn the provider a tax credit of 10 percent of their adjusted annual income.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov