Date Requested:January 13, 2011
Time Requested:06:39 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1787 Introduced HB2235
CBD Subject: COUNTY ELECTION FOR HOMESTEAD EXEMPTION
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 permit 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 use of this deferment would be a decision made on a county-by-county basis. If all counties permitted this type of deferment, there would be an annual decrease of roughly $1.2 million in local property tax revenues and minimal loss in State revenue.
    
    The State Tax Department would incur additional costs of $40,000 to make these changes. There would be no other additional costs to the State or local governments.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 40,000 0
Personal Services 0 0 0
Current Expenses 0 40,000 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 use of this deferment would be a decision made on a county-by-county basis. If all counties permitted this type of deferment, there would be an annual decrease of roughly $1.2 million in local property tax revenues and minimal loss in State revenue.
    
    The State Tax Department would incur additional costs of $40,000 to make these changes. There would be no other additional costs to the State or local governments.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to permit 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. Also, a starting point after which the increases may be deferred is not stated in the bill.