LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 62 HLS 201ES 55
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: July 6, 2020 12:30 PM Author: ZERINGUE
Dept./Agy.: LWC/Revenue
Subject: Unemployment compensation Analyst: Tanesha Morgan
UNEMPLOYMENT COMP EN SEE FISC NOTE GF RV Page 1 of 1
Provides for state income tax withholdings on unemployment compensation benefits (Item #32)
Proposed law provides that if a claimant is eligible to receive any temporary federal emergency unemployment assistance in
addition to the maximum weekly benefits amounts established in present law, then the claimant, when filing a claim for
state unemployment compensation benefits, shall submit to the withholding of state income taxes at a rate of four percent.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
Under present law, unemployment benefits are taxable income. However, state income tax is not withheld from
unemployment benefits before sending the benefit to the claimant. Currently, claimants pay state income tax on
unemployment benefits when they file their individual income tax returns. This bill provides that state income tax shall be
withheld from unemployment benefits when it is paid to the claimant. When the claimant files a return for the tax period, the
tax liability will be reconciled with the tax already paid through withholdings. Overpayments would generate refunds, and
underpayments would generate tax due, although the ultimate tax liability is not changed. It is possible that the timing of
some tax receipts will shift between fiscal years, but this possibility is not considered material.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}