FISCAL NOTE



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


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


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


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.



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