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 purpose of this bill is to exempt living organ donors from all personal income tax in the taxable year in which the human organ transplantation occurs. The bill defines the term human organ.
According to our interpretation, this bill would exempt from personal income tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone morrow for the year that they donate. As a result, the passage of this bill may result in an average annual loss of less than $100,000 to the General Revenue Fund.
Additional administrative costs to the State Tax Department would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
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):
According to the United States Department of Health and Human Resources in 2012 approximately 5,372 living donors donated full or part of their organ in United States. Living donors represents 0.002% of the total United States’ population.
According to our interpretation, this bill would exempt from personal income tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone morrow for the year that they donate. As a result, the passage of this bill may result in an average annual loss of less than $100,000 to the General Revenue Fund.
Additional administrative costs to the State Tax Department would be minimal.
Memorandum
The bill does not address the issue of whether the exemption would be for the entire tax liability on a joint return or just the tax liability attributable to the individual making the organ donation.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov