Date Requested:March 09, 2009
Time Requested:06:06 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2009R2633 Introduced HB2998
CBD Subject: REAL PROPERTY VALUATIONS
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 add language to limit the rate of increase in assessed values of tracts of real property used for residential and farm purposes which have not been sold nor otherwise transferred to an amount not to exceed the annual change of the Consumer Price Index.
    
    The revenue impact of this bill on the State and local governments cannot be determined.
    
    Additional administrative costs to the State Tax Department or local governments cannot be determined.
    
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 0
3. Explanation of above estimates (including long-range effect):
    The revenue impact of this bill on the State and local governments cannot be determined.
    
    Additional administrative costs to the State Tax Department or local governments cannot be determined.
    

Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is add language to limit the rate of increase in assessed values of tracts of real property used for residential and farm purposes which have not been sold nor otherwise transferred to an amount not to exceed the annual change of the Consumer Price Index.
    
    The bill limits annual increases in assessed value of real property used for residential and farm purposes which have not been sold or transferred to an amount not to exceed the annual change in the Consumer Price Index. Article X, Section 1 of the West Virginia Constitution provides that “all property, both real and personal, shall be taxed in proportion to its value to be ascertained as directed by law”. By limiting such increases in value, the bill allows some property to be taxed in a way that is not proportionate to its value, which may possibly violate the constitutional provision.