FISCAL NOTE

Date Requested: June 04, 2019
Time Requested: 08:47 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
4153 Engrossed SB1039
CBD Subject:


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 establish the Student Success Act of 2019.
    
    Among various changes, this bill creates a Personal Income Tax credit of up to $250 for the purchase of supplementary education materials or professional development costs incurred by a classroom teacher, classroom aide, autism mentor, braille specialist, early childhood classroom assistant, paraprofessional, sign language assistant teacher, educational sign language interpreter or sign language support specialist employed by a public or private school. However, the bill is silent on a number of other provisions, including but not limited to if the teacher must be a West Virginia resident or if the teacher must teach in a West Virginia school. For the purpose of this analysis, we assume a qualifying teacher must teach in a West Virginia-based public or private primary or secondary school. The revenue loss from this credit would be $5.9 million per year beginning in FY2020.
    
    The new tax credit for teachers would result in an increase in costs to the State Tax Department of $56,000 in FY2020 and $40,000 in subsequent fiscal years.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 56,000 40,000
Personal Services 0 40,000 40,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 1,000 0
Other 0 15,000 0
2. Estimated Total Revenues 0 0 0


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


    Among various changes, this bill creates a Personal Income Tax credit of up to $250 for the purchase of supplementary education materials or professional development costs incurred by a classroom teacher, classroom aide, autism mentor, braille specialist, early childhood classroom assistant, paraprofessional, sign language assistant teacher, educational sign language interpreter or sign language support specialist employed by a public or private school. However, the bill is silent on a number of other provisions, including but not limited to if the teacher must be a West Virginia resident or if the teacher must teach in a West Virginia school. For the purpose of this analysis, we assume a qualifying teacher must teach in a West Virginia-based public or private primary or secondary school. The revenue loss from this credit would be $5.9 million per year beginning in FY2020.
    
    The new tax credit for teachers would result in an increase in costs to the State Tax Department of $56,000 in FY2020 and $40,000 in subsequent fiscal years.
    



Memorandum


    The stated purpose of this bill is to establish the Student Success Act of 2019.
    
    Language of the proposed bill does not provide sufficient guidance as to residency or school location requirements. As written, the proposed bill does not appear to limit the tax credit to school personnel in this State. It is plausible that a West Virginia resident who works in a neighboring state may qualify. The term “qualified educational expenses” is broadly defined.
    



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