Date Requested:January 25, 2011
Time Requested:02:32 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2228 Introduced SB266
CBD Subject: REAL PROPERTY TRANSFER TAX
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund local governments
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 authorize the real property transfer tax collected by the state to be paid to the counties incrementally over a five-year period. This bill does not increase taxes paid by a taxpayer.
    
    According to the provisions of this bill, State Property Transfer Tax collections will be gradually be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer Tax as follows:
    
     State Counties
    
    FY 2012 $6,480,000 $ 1,620,000
    
    FY 2013 $5,280,000 $ 3,520,000
    
    FY 2014 $4,000,000 $ 6,000,000
    
    FY 2015 $2,060,000 $ 8,240,000
    
    FY 2016 and thereafter $0 $10,700,000
    
    The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rise from $1.6 million in FY2012 to $10.7 million after five years.
    
    There would be no additional administrative costs for the Tax Department. Other agencies could incur additional costs in processing the distribution of these funds.
    

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 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):
    According to the provisions of this bill, State Property Transfer Tax collections will be gradually be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer Tax as follows:
    
     State Counties
    
    FY 2012 $6,480,000 $ 1,620,000
    
    FY 2013 $5,280,000 $ 3,520,000
    
    FY 2014 $4,000,000 $ 6,000,000
    
    FY 2015 $2,060,000 $ 8,240,000
    
    FY 2016 and thereafter $0 $10,700,000
    
    The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rise from $1.6 million in FY2012 to $10.7 million after five years.
    
    There would be no additional administrative costs for the Tax Department. Other agencies could incur additional costs in processing the distribution of these funds.
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to authorize the real property transfer tax collected by the state to be paid to the counties incrementally over a five-year period. This bill does not increase taxes paid by a taxpayer.
    
    According the bill, the distribution procedure should begin on July 1, 2010. This commencement date needs to be updated. This distribution is in addition to the equal amount of Property Transfer Tax collected under subsection (d) and payable to the county. This could result in confusion in that the tax is collected for the State but a portion is distributed to the county while an amount of tax is also collected for the county.