FISCAL NOTE

Date Requested: February 13, 2017
Time Requested: 01:41 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1353 Introduced
CBD Subject: Senior Citizens, Taxation


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 raise the maximum personal income tax exemption for persons over the age of sixty-five and for persons who are totally disabled, for the next three years. The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in FY2018. The modification would increase to $12,000 for FY2018, to $16,000 for FY2019, and to $20,000 for FY2020 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows: Amount of Fiscal Decreasing Revenue Year Modification Loss FY2018 $12,000 $31.3 million FY2019 $16,000 $59.5 million FY2020 $20,000 $82.6 million The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. Additional costs to the State Tax Department would be minimal.



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 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -31,300,000 0


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


The bill, as written, increases the decreasing modification for seniors and persons who are totally and permanently disabled from $8,000 to $20,000, but the increase would be phased in over three years beginning in FY2018. The modification would increase to $12,000 for FY2018, to $16,000 for FY2019, and to $20,000 for FY2020 and beyond. Passage of this bill would result in a reduction in General Revenue Fund collections as follows: Amount of Fiscal Decreasing Revenue Year Modification Loss FY2018 $12,000 $31.3 million FY2019 $16,000 $59.5 million FY2020 $20,000 $82.6 million The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time. Additional costs to the State Tax Department would be minimal.



Memorandum






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