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 resolution is to increase the homestead exemption from twenty thousand to thirty thousand dollars by two thousand nine. The bill, as written, increases the Homestead Exemption to $25,000 for Tax Year 2009 and to $30,000 for Tax Year 2010. The increase in the Homestead Exemption from $20,000 to $25,000 in Tax Year 2009 would result in a revenue loss of $8.2 million annually for local levying bodies and an increase of $300,000 in General Revenue Fund collections. The increase to $30,000 in Tax Year 2010 would result in an additional decrease of $6.9 million in local revenue and an additional increase in General Revenue Fund collections of $530,000. The State Tax Department will incur programming costs of $40,000 in Tax Year 2009 and 2010. There would be no other additional administrative costs to the State Tax Department or local governments.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 40,000 0
Personal Services 0 0 0
Current Expenses 0 40,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -14,300,000


Explanation of above estimates (including long-range effect):


The bill, as written, increases the Homestead Exemption to $25,000 for Tax Year 2009 and to $30,000 for Tax Year 2010. The increase in the Homestead Exemption from $20,000 to $25,000 in Tax Year 2009 would result in a revenue loss of $8.2 million annually for local levying bodies and an increase of $300,000 in General Revenue Fund collections. The increase to $30,000 in Tax Year 2010 would result in an additional decrease of $6.9 million in local revenue and an additional increase in General Revenue Fund collections of $530,000. The State Tax Department will incur programming costs of $40,000 in Tax Year 2009 and 2010. There would be no other additional administrative costs to the State Tax Department or local governments.



Memorandum






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