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 allow a modification reducing federal adjusted gross when medical expenses exceed $2,000 a year. The State Tax Department cannot estimate the impact of this bill. There would be no additional cost 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 0


Explanation of above estimates (including long-range effect):


The State Tax Department cannot estimate the impact of this bill. We cannot determine the number of taxpayers who would be able to take this decreasing modification In addition, we cannot determine the average modification that would be taken because there are inconsistencies in the bill. In one phrase, it states that the decreasing modification is authorized for medical expenses that exceed $2,000 a year while in another phrase the decreasing modification is for sums spent for medical expenses not to exceed $2,000. There would be no additional cost to the State Tax Department.



Memorandum


The stated purpose of this bill is to allow a modification reducing federal adjusted gross when medical expenses exceed $2,000 a year. This bill fails to define “medical expenses” and “reasonable and necessary.” In addition, the bill is internally inconsistent. In one phrase, it states that the decreasing modification is authorized for medical expenses that exceed $2,000 a year. In another phrase, the decreasing modification is for sums spent for medical expenses not to exceed $2,000.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov