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