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