Date Requested:February 10, 2011
Time Requested:01:27 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2609 Introduced SJR11
CBD Subject: TANGIBLE PROPERTY TAX 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 resolution is to submit the proposed “Tangible Personal Property Tax Exemption and Rate Reduction Amendment” to the Constitution of the State to the people of the State for ratification or rejection at the general election of 2012.
    
    As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2012. Passage of this resolution, in and of itself, will have no impact on current State and local revenue. If the proposed Amendment is subsequently ratified by voters, the Legislature would have authority to enact laws to exempt all or portions of tangible personal property currently subject to tax. The Resolution also provides, that as an alternative to exempting tangible personal property from tax, the Legislature may enact laws to reduce the maximum levy rates on such property. And, the Resolution provides that if the Legislature enacts an exemption or rate reduction law it must enact laws that provide measures by which revenues reduced or lost as a result of an exemption or rate reduction may be replaced. According to our interpretation, enactment of this resolution will result in no net change in total State and local tax revenues due to requirements of revenue neutrality. The State Tax Department is unable to accurately estimate the additional administrative costs associated with adoption of the proposed Amendment and a subsequently enacted exemption or maximum rate levy.
    

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):
    As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2012. Passage of this resolution, in and of itself, will have no impact on current State and local revenue. If the proposed Amendment is subsequently ratified by voters, the Legislature would have authority to enact laws to exempt all or portions of tangible personal property currently subject to tax. The Resolution also provides, that as an alternative to exempting tangible personal property from tax, the Legislature may enact laws to reduce the maximum levy rates on such property. And, the Resolution provides that if the Legislature enacts an exemption or rate reduction law it must enact laws that provide measures by which revenues reduced or lost as a result of an exemption or rate reduction may be replaced. According to our interpretation, enactment of this resolution will result in no net change in total State and local tax revenues due to requirements of revenue neutrality. The State Tax Department is unable to accurately estimate the additional administrative costs associated with adoption of the proposed Amendment and a subsequently enacted exemption or maximum rate levy.
    


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