FISCAL NOTE
Date Requested: February 22, 2017 Time Requested: 01:11 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2470 |
Introduced |
SB403 |
|
CBD Subject: |
Retirement, 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 increase the amount of retirement income from public employee pensions, from $2,000 to $20,000, that is excluded from the calculation of income subject to state personal income taxes.
The bill, as written, increases the decreasing modification from $2,000 to $20,000 for benefits received under PERS, the Teachers’ Retirement System and federal retirement beginning with Tax Year 2018. Passage of this bill would reduce General Revenue Fund collections by roughly $21.2 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs 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 |
0 |
-21,200,000 |
Explanation of above estimates (including long-range effect):
The bill, as written, increases the decreasing modification from $2,000 to $20,000 for benefits received under PERS, the Teachers’ Retirement System and federal retirement beginning with Tax Year 2018. Passage of this bill would reduce General Revenue Fund collections by roughly $21.2 million in FY2019. The anticipated retirements of members of the baby-boom generation will result in additional escalation of costs over time.
Additional administrative costs would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov