FISCAL NOTE



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 modernize procedures and timeframes for assessments of real and personal property, notices of assessments, and appeals of assessments. It provides special timeframes for assessment of industrial and natural resources property. It provides for appeal of an assessor’s decision directly to the Office of Tax Appeals if the value in controversy is $50,000 or more. For taxes levied after December 31, 2008, the bill provides that appeals taken to circuit court from a decision of the Office of Tax Appeals may not be appealed to the Supreme Court of Appeals unless the value in controversy is $50,000 or more. The bill establishes procedures for election of arbitration of disputed decisions of a board of equalization and review (county commission). The Tax Department does not have sufficient data to quantify this information. However, the compressing of the county assessor’s time frame for the assessment and appraisal processes, the requirement to notify all real and personal property owners annually of their assessed value, required hearings for taxpayers and the mailing of results of the hearings would result in an estimated increase in costs in the range of $8.0 million to $10.0 million.



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 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


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


The Tax Department does not have sufficient data to quantify this information. However, the compressing of the county assessor’s time frame for the assessment and appraisal processes, the requirement to notify all real and personal property owners annually of their assessed value, required hearings for taxpayers and the mailing of results of the hearings would result in an estimated increase in costs in the range of $8.0 million to $10.0 million.



Memorandum


The stated purpose of this bill is to modernize procedures and timeframes for assessments of real and personal property, notices of assessments, and appeals of assessments. It provides special timeframes for assessment of industrial and natural resources property. It provides for appeal of an assessor’s decision directly to the Office of Tax Appeals if the value in controversy is $50,000 or more. For taxes levied after December 31, 2008, the bill provides that appeals taken to circuit court from a decision of the Office of Tax Appeals may not be appealed to the Supreme Court of Appeals unless the value in controversy is $50,000 or more. The bill establishes procedures for election of arbitration of disputed decisions of a board of equalization and review (county commission). Section 11-13-1 is amended by dividing it into six subsections. There are problems with the language in Subsection (a). In addition, the language that is stricken in the bill includes the guidance for determining the true and actual value of the property to be assessed. There are also problems with definitions. The definition of “tax year” in this bill is different from the definition in West Virginia Code §11-5-3, and both relate to tangible personal property. The term “economic unit” is not defined in the bill.



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