Date Requested: January 19, 2015
Time Requested: 11:05 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2228 Introduced HB2115
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 update the meaning of “federal taxable income” and certain other terms in the West Virginia Corporation Net Income Tax Act by bringing them into conformity with their meaning for Internal Revenue Code’s definitions.
    
    As written, this bill will update West Virginia’s Corporation Net Income Tax Law with the laws of the United States, in effect prior to January 1, 2015, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made before January 1, 2015. Federal tax law provisions enacted in 2014 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2016.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill.
    



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 0 0


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


    Passage of this bill will update West Virginia’s Corporation Net Income Tax Law with the laws of the United States, in effect prior to January 1, 2015, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made before January 1, 2015. Federal tax law provisions enacted in 2014 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2016. The Federal law changes in 2014 were primarily to items not associated with the determination of federal taxable income, the starting point for the West Virginia Corporation Net Income Tax. Thus, the estimated cost in FY2016 Corporation Net Income Tax revenue attributable to conformity with the federal statutes that were enacted prior to January 1, 2015 is minimal.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill.
    



Memorandum


    



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