Date Requested: February 24, 2015
Time Requested: 01:36 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
3067 Introduced HB2907
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 taxpayers repaying their own student loans a modification reducing federal adjusted gross income in the amount of the principal and interest paid, for personal income tax purposes.
    
    According to our interpretation, passage of this bill would allow taxpayers repaying their own student loans to deduct the amount of their student loan payments from federal adjusted gross income for West Virginia Personal Income Tax purposes. Based on available data, the revenue loss due to passage of this bill would be $15.8 million per year, beginning in FY2016.
    
    Additional administrative costs would be $45,500 in FY2016 and $30,000 each subsequent year.
    



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 -15,800,000 -15,800,000


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


    According to our interpretation, passage of this bill would allow taxpayers repaying their own student loans to deduct the amount of their student loan payments from federal adjusted gross income for West Virginia Personal Income Tax purposes. Based on available data, the revenue loss due to passage of this bill would be $15.8 million per year, beginning in FY2016.
    
    Additional administrative costs would be $45,500 in FY2016 and $30,000 each subsequent year.
    



Memorandum


    



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