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 exempt the first $20,000 of state pensions and social security benefits from West Virginia personal income tax.
The bill, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled. The provisions of this bill would reduce General Revenue Fund collections by roughly $26.2 million in FY2011. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
There would be no additional administrative costs.
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):
The bill, as written, exempts up to an additional $20,000 of pension income for PERS, the Teachers’ Retirement System and federal retirees. The bill also allows the $8,000 modification in addition to the new $20,000 decreasing modification for seniors and those who are permanently and totally disabled, but surviving spouses must include the additional $20,000 modification in calculating the $8,000 modification. In addition, under this proposal, a surviving spouse may claim an additional $8,000 exclusion in addition to the $8,000 exclusion for being a senior citizen. The provisions of this bill would reduce General Revenue Fund collections by roughly $26.2 million in FY2011. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. The bill does not exempt the first $20,000 of social security benefits as stated in the purpose.
There would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov