Date Requested:January 31, 2011
Time Requested:01:48 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2325 Introduced SB359
CBD Subject: EXEMPTING CERTAIN CHARITABLE ORGAINIZATIONS
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 exempt from taxation property which is owned by a charitable organization owned by a nonprofit youth serving organization which is leased or used to generate revenue for the nonprofit organization so long that any lease is for intervals of time no greater than three weeks, and that the total number of weeks leased out per year does not exceed twenty-six weeks.
    
    There would be no fiscal impact related to this proposal. This type of property would already be exempt.
    
    There would be no additional administrative costs to the State Tax Department 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 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):
    There would be no fiscal impact related to this proposal. This type of property would already be exempt.
    
    There would be no additional administrative costs to the State Tax Department 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 exempt from taxation property which is owned by a charitable organization owned by a nonprofit youth serving organization which is leased or used to generate revenue for the nonprofit organization so long that any lease is for intervals of time no greater than three weeks, and that the total number of weeks leased out per year does not exceed twenty-six weeks.
    
    Currently, W. Va. Code §11-3-9(12) allows for “property used for charitable purposes and not held or leased out for profit” to be exempt from property taxes. This bill amends §11-3-9 by adding a provision under subdivision (12), subsection (a) that allows for “property owned by a nonprofit organization with youth service as a primary purpose” to be used to generate revenue or leased for a period of “intervals of time no greater than three weeks... not to exceed twenty-six weeks” per year to be exempt from Property Tax. The proposed amendment to the exemption is not enumerated in Article X of the West Virginia Constitution. Article X requires that taxation be “equal and uniform throughout the state, and all property, both real and personal, shall be taxed in proportion...” The “equal and uniform” requirement is modified under Article X, §1 by allowing “property used for educational, literary, scientific, religious or charitable purposes...to be exempted from taxation as directed by the Legislature.