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 establish incentives to attract and retain young talent to the State of West Virginia.
As written, this bill proposes a new Personal Income Tax decreasing modification for taxpayers who are graduates of a higher education institution and who have obtained the qualifying degree not more than two years prior to the tax year in which the modification is to be claimed. Qualifying taxpayers would be permitted a decreasing modification in the amount of $10,000. The decreasing modification proposal requires the State Tax Commissioner to promulgate Legislative rules, as necessary, regarding the documentation necessary to claim the modification.
According to our interpretation and based upon available information, passage of the proposed decreasing modification would reduce revenue by roughly $1.5 million to $2.5 million per year beginning in Fiscal Year 2012.
If all Personal Income Tax returns claiming the proposed modification would be accepted as filed, additional administrative costs for the State Tax Department would be minimal. However, the bill as written, requires the State Tax Commissioner to promulgate Legislative rules, as necessary, regarding the documentation necessary to claim the proposed modification. If the intent of the required rules is to ensure complete review of the use of the proposed modification, additional administrative costs to the State Tax Department would be more significant.
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 proposes a new Personal Income Tax decreasing modification for taxpayers who are graduates of a higher education institution and who have obtained the qualifying degree not more than two years prior to the tax year in which the modification is to be claimed. Qualifying taxpayers would be permitted a decreasing modification in the amount of $10,000. The decreasing modification proposal requires the State Tax Commissioner to promulgate Legislative rules, as necessary, regarding the documentation necessary to claim the modification. According to our interpretation and based upon available information, passage of the proposed decreasing modification would reduce revenue by roughly $1.5 million to $2.5 million per year beginning in Fiscal Year 2012.
If all Personal Income Tax returns claiming the proposed modification would be accepted as filed, additional administrative costs for the State Tax Department would be minimal. However, the bill as written, requires the State Tax Commissioner to promulgate Legislative rules, as necessary, regarding the documentation necessary to claim the proposed modification. If the intent of the required rules is to ensure complete review of the use of the proposed modification, additional administrative costs to the State Tax Department would be more significant.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov