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 exempt all military retirement income from state income tax effective in 2015.
The bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. Passage of this bill would reduce General Revenue Fund collections by roughly $1.8 million, beginning in FY2016.
Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $25,000.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2014 Increase/Decrease (use"-") |
2015 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
25,000 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
25,000 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
-1,800,000 |
Explanation of above estimates (including long-range effect):
This bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. The provisions of the bill would become effective for tax years beginning after December 31, 2014. Passage of this bill would result in a decrease in General Revenue Fund collections of roughly $1.8 million beginning in FY2016.
Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $25,000 in FY2015 to revise tax return computer programs.
Memorandum
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox