Date Requested:February 16, 2009
Time Requested:05:32 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009R1714 Introduced SJR9
CBD Subject: INCREASE HOMESTEAD EXEMPTION FROM 20-$50,000
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 resolution is to amend the Constitution to increase the homestead exemption from $20,000 to $50,000 or 30% of assessed valuation, whichever amount is greater.
    
    The increase in the Homestead Exemption from $20,000 to $50,000 or 30% of the assessed value would result in a revenue loss of $35.3 million annually for local levying bodies and an increase of $2.9 million in General Revenue Fund collections.
    
    Additional administrative costs for the State Tax Department for computer programming changes on the statewide property tax computer network cannot be determined. There would be no additional administrative costs for local governments.

Fiscal Note Detail
Over-all effect
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 -32,400,000
3. Explanation of above estimates (including long-range effect):
    The increase in the Homestead Exemption would result in a loss of $35.3 million in local property tax revenue. General Revenue Fund collections would increase by $2.9 million as the $140,000 decline in State property tax revenue would be offset by a gain in Personal Income Tax collections. As the level of the Homestead Exemption rises, the number of taxpayers who owe property taxes on their home declines. Therefore, the cost of the refundable property tax credit against Personal Income Tax liability for lower income households would also decline.
    
    Additional administrative costs for the State Tax Department for computer programming changes on the statewide property tax computer network cannot be determined. There would be no additional administrative costs for local governments.
    
    
    


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