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 bill is to authorize the stabilization of property tax increases for property owned, used and occupied by senior citizens.
The bill freezes incremental property tax increases on property owned and used and occupied exclusively for residential purposes by persons age sixty-five or older only if the tax increase would have otherwise exceeded the greater of 10 percent or $300. The freeze would result in a revenue loss of $860,000 annually for local levying bodies and a minimal decrease in General Revenue Fund collections.
Additional administrative costs cannot be determined. The State Tax Department would have a one-time cost of $50,000 for programming. In addition, the State Tax Department and the county sheriffs would incur additional costs because property would have to be tracked annually on a parcel by parcel basis.
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 |
-860,000 |
Explanation of above estimates (including long-range effect):
The bill freezes incremental property tax increases on property owned and used and occupied exclusively for residential purposes by persons age sixty-five or older only if the tax increase would have otherwise exceeded the greater of 10 percent or $300. The freeze would result in a revenue loss of $860,000 annually for local levying bodies and a minimal decrease in General Revenue Fund collections.
Additional administrative costs cannot be determined. The State Tax Department would have a one-time cost of $50,000 for programming. In addition, the State Tax Department and the county sheriffs would incur additional costs because property would have to be tracked annually on a parcel by parcel basis.
Memorandum
The stated purpose of this bill is to authorize the stabilization of property tax increases for property owned, used and occupied by senior citizens.
West Virginia Constitution Article X, Section 1 requires that taxation is to be equal and uniform and that it is to be taxed in proportion to its value. The bill does not appear to satisfy those requirements.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us