FISCAL NOTE

Date Requested: January 12, 2018
Time Requested: 11:12 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1890 Introduced HB2641
CBD Subject: Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is treat natural resources police like all other law enforcement and exempt their pension benefits from state income tax.
    
    As written, this bill would exempt retirement income received from the West Virginia Public Employees Retirement System (PERS) for police officers, including those formerly classified as conservation officers, who retire from the Division of Natural Resources. If the exemption proposed by this bill is restructured to only apply to the portion of retirement income received from PERS that is attributable to service as a Division of Natural Resources police officer, the annual reduction in the General Revenue Fund would be roughly $200,000 per year beginning FY2019.
    
    The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 10,000 10,000
Personal Services 0 10,000 10,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -200,000 -200,000


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


    As written, this bill would exempt retirement income received from the West Virginia Public Employees Retirement System (PERS) for police officers, including those formerly classified as conservation officers, who retire from the Division of Natural Resources. If the exemption proposed by this bill is restructured to only apply to the portion of retirement income received from PERS that is attributable to service as a Division of Natural Resources police officer, the annual reduction in the General Revenue Fund would be roughly $200,000 per year beginning FY2019.
    
    The provisions of this bill would apply to an estimated 90 public sector retirees. However, other similarly situated retirees may seek the same special tax status.
    
    Additional administrative costs would be $10,000 per year for FY2019 and thereafter.
    



Memorandum


    The stated purpose of this bill is to treat natural resources police like all other law enforcement and exempt their pension benefits from state income tax.
    
    The stated purpose of the proposed bill is to treat natural resources police like all other law enforcement, but not all law enforcement officers are entitled to the modification under W. Va. Code ยง11-21-12(c)(6). The scope of the current modification is very narrow and is applicable only to the listed retirement plans. The modification on its face does not include the retirement income of sheriffs or deputy sheriffs who are enrolled under the Public Employee Retirement System [PERS]. Nor does it include state prison guards or parole officers, who are likewise enrolled in PERS.
    
    



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