FISCAL NOTE

Date Requested: January 26, 2018
Time Requested: 01:13 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1376 Introduced HB4331
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 to exempt living organ donors to be exempt from all personal income tax in the taxable year in which the human organ transplantation occurs. The bill defines the term human organ.
    
    According to our interpretation, this bill would exempt from Personal Income Tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone marrow for the year that they donate. Passage of this bill would result in an average loss of less than $100,000 per year. However, due to the huge variability in income tax liabilities of individual taxpayers, there could be significant annual swings in the revenue losses depending on the income level of participating individuals.
    
    Additional administrative costs incurred by the State Tax Department would be $15,000 for FY2019 and $10,000 in subsequent fiscal years.
    



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 15,000 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 5,000 0
2. Estimated Total Revenues 0 -100,000 -100,000


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


    According to our interpretation, this bill would exempt from Personal Income Tax any individual that donates all or part of a liver, pancreas, kidney, intestine, lung or bone marrow for the year that they donate. Passage of this bill would result in an average loss of less than $100,000 per year. However, due to the huge variability in income tax liabilities of individual taxpayers, there could be significant annual swings in the revenue losses depending on the income level of participating individuals.
    
    Additional administrative costs incurred by the State Tax Department would be $15,000 for FY2019 and $10,000 in subsequent fiscal years.
    



Memorandum


    



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