Date Requested: February 24, 2015
Time Requested: 01:56 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
3170 Introduced HB2950
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 for a $1,000 tax credit against personal income tax in tax years 2016-2017 for recent graduates of higher education programs.
    
    According to our interpretation and based on available data, a Personal Income Tax credit for recent graduates of up to $1,000 would result in a revenue loss of $29. 6 million in FY2017 and a loss of $7.4 million in FY2018. Graduates from January 1, 2012 through December 31, 2015 would be able to take a credit in Tax Year 2016. A credit would be available in Tax Year 2017 for those taxpayers who graduated between January 1, 2013 and December 31, 2016 but did not take a credit in Tax Year 2016.
    
    Additional administrative costs will be $45,500 in FY2017 and $30,000 in FY2018.
    
    



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 45,500 30,000
Personal Services 0 30,000 30,000
Current Expenses 0 10,500 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,000 0
2. Estimated Total Revenues 0 0 0


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


    According to our interpretation and based on available data, a Personal Income Tax credit for recent graduates of up to $1,000 would result in a revenue loss of $29. 6 million in FY2017 and a loss of $7.4 million in FY2018. Graduates from January 1, 2012 through December 31, 2015 would be able to take a credit in Tax Year 2016. A credit would be available in Tax Year 2017 for those taxpayers who graduated between January 1, 2013 and December 31, 2016 but did not take a credit in Tax Year 2016.
    
    Additional administrative costs will be $45,500 in FY2017 and $30,000 in FY2018.
    



Memorandum


    



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