Date Requested: February 09, 2015
Time Requested: 12:40 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2100 Introduced HB2668
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 the bill is to permit deed of trust or mortgage interest paid on taxpayers’ personal residences to be used as a deduction for personal income tax purposes up to $4,000 per year.
    
    According to our interpretation, this modification would be available to both those who claim itemized deductions for federal income tax purposes as well as non-itemizers. If the bill applies to both itemizers and non-itemizers, General Revenue Fund collections could be reduced by roughly $63 million beginning in FY2017.
    
    Additional administrative costs to the State Tax Department will be $5,000 in FY2017.
    



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 5,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 5,000
2. Estimated Total Revenues 0 0 -63,000,000


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


    According to our interpretation, this modification would be available to both those who claim itemized deductions for federal income tax purposes as well as non-itemizers. If the bill applies to both itemizers and non-itemizers, General Revenue Fund collections could be reduced by roughly $63 million beginning in FY2017.
    
    Additional administrative costs to the State Tax Department will be $5,000 in FY2017.
    



Memorandum


    The stated purpose of the bill is to permit deed of trust or mortgage interest paid on taxpayers’ personal residences to be used as a deduction for personal income tax purposes up to $4,000 per year.
    
    “Personal residence” is not defined in the bill.
    
    The title and note refer to the modification reducing federal adjusted gross income as a deduction.
    
    
    
    



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