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 county tax assessors to choose not to impose the property tax in a county on businesses for property that is business inventory intended for resale.
Passage of this bill would result in a revenue loss of up to $230,000 for the State and $57.9 million for local governments, depending on the number of counties that choose not to impose Property Tax on business inventory intended for resale.
There would be no additional costs for the State Tax Department. Additional administrative costs to local governments cannot be determined.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2009 Increase/Decrease (use"-") |
2010 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 |
-58,100,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would result in a revenue loss of up to $230,000 for the State and $57.9 million for local governments, depending on the number of counties that choose not to impose Property Tax on business inventory intended for resale. Raw materials and goods in process inventory held by manufacturers within the State would continue to be fully taxed.
There would be no additional costs for the State Tax Department. Additional administrative costs to local governments cannot be determined.
Memorandum
The stated purpose of this bill is to authorize county tax assessors to choose not to impose the property tax in a county on businesses for property that is business inventory intended for resale.
The West Virginia Constitution Article X, Section 1, requires that all property be subject to taxation and specifies those types of property that may be exempt from taxation by law. Business inventory intended for resale is not included in that listing.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us