Date Requested:January 26, 2008
Time Requested:02:26 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2008R1333 Introduced HB4302
CBD Subject: "FARM PROPERTY" APPRAISALS
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 provide for aged or disabled farmers to continue to receive the benefit of having their farm land appraised as farm property after they cease farming due to age or other disability.
    
    The loss of revenue to the State and local governments cannot be determined.
    
    Additional administrative costs to the State Tax Department or local governments cannot be determined.
    

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 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 0
3. Explanation of above estimates (including long-range effect):
    This bill would allow aged or disabled farmers to continue to receive the benefit of having their farm land appraised as farm property after they cease farming due to age or other disability. The loss of revenue to the State and local governments cannot be determined.
    
    Additional administrative costs to the State Tax Department or local governments cannot be determined.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to provide for aged or disabled farmers to continue to receive the benefit of having their farm land appraised as farm property after they cease farming due to age or other disability.
    
    This proposal would allow a parcel of real property that has been appraised as farm property to continue to be appraised as farm property after the owner has ceased engaging in farming if certain conditions are met. This seems to be inconsistent with Article X, section 1 of the State Constitution which provides that “the aggregate of taxes assessed in any one year . . . upon farms occupied and cultivated by their owners or bona fide tenants [shall not exceed] one dollar [on each one hundred dollars of value]. Under the proposed amendment, the property could continue to be appraised as farm property without regard to its use as long as the owner who farmed it in ten of the previous fifteen years is living but disabled, whether or not he or she still occupies the property. There is nothing in the proposed bill to prohibit the owner from converting the property to some other commercial use.
    
    In addition, key terms, such as “old age” and “disability”, are not defined in the proposed bill.