Date Requested:January 18, 2008
Time Requested:03:35 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2008R1643 Introduced SB265
CBD Subject: Creating Special Aircraft Property Valuation Act
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund local property tax
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to provide a methodology for the valuation of all aircraft owned or leased by commercial airlines, charter carriers, private carriers, private companies or private firms, for property tax purposes.
    
    The bill would result in an annual decrease of up to $2.3 million in local property tax revenues and minimal loss in State revenue. The bill would allow special aircraft property which is defined to be all aircraft owned or leased by commercial airlines or private carriers to be valued at salvage value. The salvage value would be the lower of the fair market salvage value or 5 percent of the original cost.
    
    The State Tax Department will incur a one-time programming cost of $7,500. There would be no other additional administrative costs to the State Tax Department or local governments.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 7,500 0 0
Personal Services 0 0 0
Current Expenses 7,500 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -2,300,000
3. Explanation of above estimates (including long-range effect):
    The bill would result in an annual decrease of up to $2.3 million in local property tax revenues and minimal loss in State revenue. The estimate includes commercial airlines and all other aircraft, including charter airlines, private companies, private carriers and aircraft owned by individuals. We are unable to segregate the aircraft owned by individuals that would not be subject to the special valuation method.
    
    The State Tax Department will incur a one-time programming cost of $7,500. 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