Date Requested: February 20, 2015
Time Requested: 02:59 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1249 Introduced HB2870
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 two-tiered personal income tax credit to parents or legal guardians who provide home or private, primary or secondary education for their children. The tax credit will be effective upon the completion of a school year and available at a rate per child of $1,000 for home schooling and $2,000 for private schooling. The bill authorizes rule-making.
    
    Passage of this bill would result in a General Revenue Fund decline of approximately $30.6 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 would be roughly $40,000 for FY2017 and $25,000 for each year following.



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 10,500 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,000 0
2. Estimated Total Revenues 0 0 -30,600,000


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


    Passage of this bill would result in a General Revenue Fund decline of approximately $30.6 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 would be roughly $40,000 for FY2017 and $25,000 for each year following.
    
    



Memorandum


    



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