Date Requested:February 16, 2005
Time Requested:02:01 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R951 Intro SB194
CBD Subject: WV Affordable Housing Transfer Fund
FUND(S)
West Virginia Affordable Housing Trust Fund
Sources of Revenue
Special Fund
Legislation creates:
A New Program

Fiscal Note Summary

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

    The stated purpose of this bill is to provide funding for the West Virginia Affordable Housing Trust Fund by imposing a transfer fee of twenty dollars on the transfer of all real property and an additional fee of twenty dollars on the sales of mobile homes. The bill requires that the moneys collected be deposited in the West Virginia Housing Development Fund. Under the bill, not more than ten percent of the moneys collected may be used for administrative expenses. The bill changes the composition of the board of directors of the West Virginia Affordable Housing Trust Fund by reducing the number of members appointed representing nonprofit organizations, removing the executive director of a public housing authority from membership on the board and adding additional members representing real estate and manufactured housing groups. The bill also reduces the number of votes necessary for board action, provides that the West Virginia Housing Development Fund shall establish best practices for recipients of trust fund moneys and it permits trust fund moneys to be used for initial operational expenses of local governmental programs to reduce substandard housing or inappropriate land use patterns.
    
    According to our interpretation, passage of this bill would provide roughly $1.1 million per year in additional revenue to the West Virginia Affordable Housing Trust Fund beginning in Fiscal Year 2005-2006.
    
    Additional administrative costs to the State Tax Department associated with the collection of the $20 fee on the sales of mobile homes would be minimal. The collection of a $20 fee on the privilege of transferring real estate may increase the administrative costs of County Clerks.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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 1,100,000 1,100,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would provide funding for the West Virginia Affordable Housing Trust Fund by imposing a transfer fee of twenty dollars on the transfer of all real property and an additional fee of twenty dollars on the sales of mobile homes.
    
    According to our interpretation, passage of this bill would provide roughly $1.1 million per year in additional revenue to the West Virginia Affordable Housing Trust Fund beginning in Fiscal Year 2005-2006. Most of the additional revenue would be attributable to the fee upon real property transfers.
    
    Additional administrative costs to the State Tax Department associated with the collection of the $20 fee on the sales of mobile homes would be minimal. The collection of a $20 fee on the privilege of transferring real estate may increase the administrative costs of County Clerks.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us