FISCAL NOTE
Date Requested: February 09, 2016 Time Requested: 01:16 PM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1316 |
Introduced |
HB4457 |
|
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 $17.8 million per year, beginning in FY2017.
Additional administrative costs would be $45,500 in FY2017 and $30,000 each subsequent year.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2016 Increase/Decrease (use"-") |
2017 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 |
-17,800,000 |
-17,800,000 |
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 $17.8 million per year, beginning in FY2017.
Additional administrative costs would be $45,500 in FY2017 and $30,000 each subsequent year.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov