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