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 change the qualifier for low income to 250% or less of the federal poverty guideline from 150%or less of the federal poverty guideline for a senior citizens’ homestead tax credit.
As written, this bill, would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 250 percent of the federal poverty guideline based upon family size. Currently, the eligibility criteria is federal adjusted gross income of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation and assuming the change would apply to tax years beginning on or after January 1, 2011, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $3 million to $4 million.
Assuming that all Personal Income Tax returns claiming the credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.
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):
Passage of this bill would extend the Senior Citizens’ Tax Credit for Property Tax Paid on the first $20,000 of taxable assessed value of a homestead to taxpayers whose federal adjusted gross income is less than or equal to 250 percent of the federal poverty guideline based upon family size. Currently, the eligibility criteria is federal adjusted gross income of less than or equal to 150 percent of the federal poverty guideline. According to our interpretation and assuming the change would apply to tax years beginning on or after January 1, 2011, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $3 million to $4 million.
Assuming that all Personal Income Tax returns claiming the credit would be accepted as filed, additional administrative costs for the State Tax Department would be minimal.
Memorandum
The stated purpose of this bill is to change the qualifier for low income to 250% or less of the federal poverty guideline from 150%or less of the federal poverty guideline for a senior citizens’ homestead tax credit.
The stated purpose refers to a “senior citizens’ homestead tax credit” while the West Virginia Code refers to the credit as the “Senior citizens’ tax credit for property tax paid on . . . a homestead.” Also, the proposed addition appears to alter the character of the subdivision in which the proposed language was added from a definition to a qualification. Thus, the proposed change could be subject to different interpretation than intended.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov