Date Requested:March 07, 2005
Time Requested:02:42 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1243 Intro HB2884
CBD Subject: Exempt Personal Property from Taxation
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 gradually exempt from property taxes over a period of three years, personal property, including livestock employed exclusively in agriculture and products of agriculture, while owned by the producer.
    
    Assuming that the intent of this bill is to exempt only Class I personal property, passage of this bill would result in revenue losses to local governments as shown below.
    
    Losses to Local Governments
    
    Year 1 $290,000
    
    Year 2 580,000
    
    Year 3 and each year thereafter 870,000
    
    Revenue losses for the State would be minimal.
    
    The Tax Department would incur $20,000 in additional costs in the first year for programming costs. Other additional costs to 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 20,000 0
Personal Services 0 0 0
Current Expenses 0 20,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -290,000 -870,000
3. Explanation of above estimates (including long-range effect):
    Assuming the intent of this bill is to exempt only Class I personal property, passage of this bill would result in revenue losses to local governments as shown below.
    
    Loss to Local Governments
    
    Year 1 $290,000
    
    Year 2 580,000
    
    Year 3 and each year thereafter 870,000
    
    Revenue losses for the State would be minimal.
    
    The Tax Department would incur $20,000 in additional costs in the first year for programming costs. Other additional costs to the Tax Department and local governments cannot be determined.


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