Date Requested:January 19, 2010
Time Requested:04:54 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2010R1367 Introduced HJR101
CBD Subject: MANUFACTURING INVENTORY EXEMPTION
FUND(S)
None
Sources of Revenue
Other Fund None
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 submit the proposed “Commercial and Industrial Tangible Personal Property Tax Exemption Amendment” to the Constitution of the State to the people of the state for ratification or rejection at the general election of 2010.
    
    As written, this resolution proposes an amendment to the West Virginia Constitution. The resolution summarizes the proposed amendment as follows: “To amend the state Constitution to permit the Legislature to exempt from ad valorem taxation tangible personal property directly used in commercial and industrial businesses, or such components thereof as the Legislature may in its discretion designate.” Since the resolution does not change existing tax laws but merely permits the Legislature discretion in enacting, or not enacting, laws pertaining to tangible personal property directly used in commercial and industrial businesses in the future, it is our interpretation that passage of this resolution would have no impact on the revenue of the State or local governments.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this resolution. Agencies responsible for administering elections may incur some additional administrative costs attributable to passage of this resolution.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
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):
    Passage of this resolution would place a proposed amendment to the West Virginia Constitution up for approval or rejection at the general election of 2010. The resolution summarizes the proposed amendment as follows: “To amend the state Constitution to permit the Legislature to exempt from ad valorem taxation tangible personal property directly used in commercial and industrial businesses, or such components thereof as the Legislature may in its discretion designate.” Since the resolution does not change existing tax laws but merely permits the Legislature discretion in enacting, or not enacting, laws pertaining to tangible personal property directly used in commercial and industrial businesses in the future, it is our interpretation that passage of this resolution would have no impact on the revenue of the State or local governments.
    
    There would be no additional administrative costs to the State Tax Department associated with passage of this resolution. Agencies responsible for administering elections may incur some additional administrative costs attributable to passage of this resolution.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov