Date Requested:February 16, 2005
Time Requested:05:03 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R351 Intro HB2412
CBD Subject: Crafts People Exempt
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund local property tax
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    The stated purpose of this bill is to exempt from personal property taxation, the equipment, inventory and raw materials of crafts people who have had their work evaluated and accepted or juried and accepted by the West Virginia arts and crafts guild or by a similar organization.
    
    The revenue impact of this bill on the State and local governments cannot be determined. However, the amount could be significant due to the amount of equipment, inventory and raw materials of juried crafts people that are kept in their homes or businesses.
    
    Additional administrative costs for the Tax Department and local governments cannot be determined.

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 0 0
3. Explanation of above estimates (including long-range effect):
    The revenue impact of this bill on the State and local governments cannot be determined. However, the amount could be significant due to the amount of equipment, inventory and raw materials of juried crafts people that are kept in their homes or businesses.
    
    Additional administrative costs for the Tax Department and local governments cannot be determined.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    One concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt the equipment, inventory and raw materials of crafts people from ad valorem taxation. Only property used for certain activities may be exempted, and it does not appear that this type of property will qualify.
    
    In addition, the bill has no clear definition of crafts people or what organizations are considered similar to the West Virginia Arts and Crafts Guild.