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 extend until January 1, 2015, the reduction for certain retirees as additional modifications reducing federal adjusted gross income for state personal income tax. Currently, the reduction modification expires on January 1, 2012.
This bill would result in the extension of decreasing modification for certain retirees receiving pensions from defined pension plans that terminated who are being paid a reduced maximum benefit guarantee for an additional three years. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2013 to 2015.
There would be no additional costs to the State Tax Department.
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 |
-500,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would extend a decreasing modification for certain retirees receiving pensions from defined pension plans that terminated who are being paid a reduced maximum benefit guarantee for an additional three years. Passage of the proposed legislation would result in an annual loss of roughly $500,000 to the General Revenue Fund from 2013 to 2015. Current law would also require some downward adjustment in benefit level for all affected filers in the event that the total cost should exceed $2 million in a given year. Continuing stagnation in the economy may increase business bankruptcies, resulting in an increase in the number of filers claiming this modification.
There would be no additional costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov