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 include Qualified Continuing Care Retirement Communities under the provisions of the “Tax Limitations Amendment”. The bill also defines “Qualified Continuing Care Retirement Community” and “Qualified Resident”.
Based on the latest available information, the proposed change would result in an annual revenue loss of roughly $360,000 for local levying bodies and a minimal decrease in General Revenue Fund collections if all properties were changed from Class III or Class IV to Class II.
There would be no additional administrative costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
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 |
-360,000 |
Explanation of above estimates (including long-range effect):
Based on the latest available information, the proposed change would result in an annual revenue loss of roughly $360,000 for local levying bodies and a minimal decrease in General Revenue Fund collections if all properties were changed from Class III or Class IV to Class II.
There would be no additional administrative costs.
Memorandum
The stated purpose of this bill is to include Qualified Continuing Care Retirement Communities under the provisions of the “Tax Limitations Amendment”. The bill also defines “Qualified Continuing Care Retirement Community” and “Qualified Resident”.
A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to change the property classification of retirement communities for ad valorem taxation.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us