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 phase in increased assessments on property that are twenty percent or more over the assessed values of the previous year. The phase-in period is three years with no more than thirty-five percent of the increased assessment due in each of the three years. The bill provides that this does not apply to improvements to the property that result in an increased assessment.
Passage of this bill would result in a revenue loss of $6.5 million for local levying bodies and a minimal decrease in State revenue during the first year of enactment. The revenue loss for subsequent years would be $12.9 million for local levying bodies and minimal for the State.
There would be a one-time programming cost of $40,000 to the State Tax Department. There would be no other additional administrative costs to the State Tax Department or local governments.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
40,000 |
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 |
40 |
-13,000,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would result in a revenue loss of $6.5 million for local levying bodies and a minimal decrease in State revenue during the first year of enactment. The revenue loss for subsequent years would be $12.9 million for local levying bodies and minimal for the State.
There would be a one-time programming cost of $40,000 to the State Tax Department. There would be no other additional administrative costs to the State Tax Department or local governments.
Memorandum
The stated purpose of this bill is to phase in increased assessments on property that are twenty percent or more over the assessed values of the previous year. The phase-in period is three years with no more than thirty-five percent of the increased assessment due in each of the three years. The bill provides that this does not apply to improvements to the property that result in an increased assessment.
West Virginia Constitution Article X, Section 1 requires that taxation is to be equal and uniform and that it is to be taxed in proportion to its value. The bill does not appear to satisfy those requirements.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov