Date Requested: January 19, 2015
Time Requested: 09:25 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1312 Introduced SB53
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 exempt all military, National Guard and Reserve income from state income taxes.
    
    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2014. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.6 million from the exemption of reserve pay and $1.0 million for active duty pay beginning in Fiscal Year 2016.
    
    Additional administrative costs 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 -4,600,000 -4,600,000


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


    The bill, as written, exempts all military income received by regular Armed Forces, reserves and National Guard personnel from Personal Income Tax for tax years beginning after December 31, 2014. Based on the assumption that this exception includes only active duty and reserve pay and does not include military retirement income, passage of this bill would result in a loss in General Revenue of $3.6 million from the exemption of reserve pay and $1.0 million for active duty pay beginning in Fiscal Year 2016.
    
    Additional administrative costs would be minimal.
    



Memorandum


    



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