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 provide an election for county commissions to allow resident homeowners, who are sixty-five years or older, to defer the payment of property tax increases to their residential property during their lifetime.
The revenue impact of this proposal on the State and local governments cannot be determined. The use of this deferment would be a decision made on a county-by-county basis. Most, but not all, local governments would have some flexibility to at least partially increase property tax rates to offset inflationary revenue losses associated with deferred taxes.
Additional administrative costs 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 |
0 |
Explanation of above estimates (including long-range effect):
The revenue impact of this proposal on the State and local governments cannot be determined. The use of this deferment would be a decision made on a county-by-county basis. In addition, there is no data available to project the life span of resident homeowners who are sixty-five years of age or older. Currently, there are 217,080 taxpayers receiving the Homestead Exemption.
Most, but not all, local governments would have some flexibility to at least partially increase property tax rates to offset inflationary revenue losses associated with deferred taxes.
Additional administrative costs cannot be determined.
Memorandum
The stated purpose of this bill is to provide an election for county commissions to allow resident homeowners, who are sixty-five years or older, to defer the payment of property tax increases to their residential property during their lifetime.
The bill, as written, does not state that the proposal only applies to tax increases on the person’s residence. As a result, the deferment may also apply to property owned by the homeowner but used for commercial purposes. The only reference to the property owner’s residence is that the deferred taxes are to be recaptured, without interest, when the residence is sold or transferred. Also, a starting point after which the increases may be deferred is not stated in the bill.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us