Date Requested: January 19, 2015
Time Requested: 09:43 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1360 Introduced HB2039
CBD Subject: Tax


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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled, for the next three years.
    
    The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in Fiscal Year 2016. The modification would increase to $12,000 for Fiscal Year 2016, to $16,000 for Fiscal Year 2017, and to $20,000 for Fiscal Year 2018 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows:
    
     Amount of
     Fiscal Decreasing Revenue
     Year Modification Loss
    
     FY2016 $12,000 $24.0 million
     FY2017 $16,000 $46.3 million
     FY2018 $20,000 $64.6 million
    
    The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional costs to the State Tax Department would be minimal.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
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 -24,000,000 0


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


    The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in Fiscal Year 2016. The modification would increase to $12,000 for Fiscal Year 2016, to $16,000 for Fiscal Year 2017, and to $20,000 for Fiscal Year 2018 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows:
    
     Amount of
     Fiscal Decreasing Revenue
     Year Modification Loss
    
     FY2016 $12,000 $24.0 million
     FY2017 $16,000 $46.3 million
     FY2018 $20,000 $64.6 million
    
    The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
    
    Additional costs to the State Tax Department would be minimal.
    



Memorandum


    



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