Date Requested: January 16, 2015
Time Requested: 11:17 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1982 Introduced HB2167
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 provide a $500 tax credit to volunteer firefighters who have up-to-date credentials and who have responded to at least five verified calls in the taxable year.
    
    As written, the passage of this bill states that any volunteer firefighter who has up-to-date credentials and who has responded to at least five verified calls in the taxable year will be entitled to a $500 credit against his or her personal income tax for that tax year. Passage of this bill would result in a loss to the General Revenue Fund of roughly $3.3 million per year beginning in FY2017. Due to the lack of an internal effective date, this bill would not become effective until the 2016 tax year.
    
    Additional administrative costs to the State Tax Department would be roughly $25,000 per year to monitor the accuracy of tax credit claims for an estimated 6,000 taxpayers.



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 40,000 25,000
Personal Services 0 25,000 25,000
Current Expenses 0 15,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -3,300,000


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


    As written, the passage of this bill states that any volunteer firefighter who has up-to-date credentials and who has responded to at least five verified calls in the taxable year will be entitled to a $500 credit against his or her personal income tax for that tax year. Passage of this bill would result in a loss to the General Revenue Fund of roughly $3.3 million per year beginning in FY2017. Due to the lack of an internal effective date, this bill would not become effective until the 2016 tax year.
    
     Additional administrative costs to the State Tax Department would be roughly $25,000 per year to monitor the accuracy of tax credit claims for an estimated 6,000 taxpayers.



Memorandum


    



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