FISCAL NOTE

Date Requested: February 14, 2017
Time Requested: 01:36 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1253 Introduced HB2429
CBD Subject: Education (Higher), Taxation


FUND(S):

General Revenu eFund

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 $31.9 million per year, beginning in FY2019. Due to the lack of an internal effective date, this bill would not become effective until the 2018 tax year. Additional administrative costs would be $46,000 for FY2019 and $35,000 for each year following.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 35,000
Personal Services 0 0 35,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -31,900,000


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


Passage of this bill would result in a General Revenue Fund decline of approximately $31.9 million per year, beginning in FY2019. Due to the lack of an internal effective date, this bill would not become effective until the 2018 tax year. Additional administrative costs would be $46,000 for FY2019 and $35,000 for each year following.



Memorandum


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. The credit is for a resident parent or legal guardian and is a change in policy. The bill provides a credit of $1,000 per child for home schooling and $2,000 per child for private schooling “pursuant to the educational requirements set by the State Board of Education for primary and secondary programs and standards.” It is unclear what the youngest age and oldest age a claim for a child may be made. The bill requires the Tax Commissioner to provide rules for reporting, filing and application of claims for the credit.



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