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 purpose of this bill is extend the homestead exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse. This bill extends the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled after the death of the qualifying spouse as long as the surviving spouse occupies the property as his or her residence. The surviving spouse must refile for the Homestead Exemption with a copy of the death certificate. The revenue loss associated with the proposed change cannot be readily quantified. Roughly 30 percent of all owner-occupied homes in West Virginia qualify for the Homestead Exemption. This share will increase, especially for surviving spouses of permanently disabled Homestead Exemption recipients. Local property tax reductions may be partially offset by tax rate increases in a number of jurisdictions. Additional administrative costs to the State Tax Department or local governments cannot be determined.



Fiscal Note Detail


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


Explanation of above estimates (including long-range effect):


This bill extends the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled after the death of the qualifying spouse as long as the surviving spouse occupies the property as his or her residence. The surviving spouse must refile for the Homestead Exemption with a copy of the death certificate. The revenue loss associated with the proposed change cannot be readily quantified. Roughly 30 percent of all owner-occupied homes in West Virginia qualify for the Homestead Exemption. This share will increase, especially for surviving spouses of permanently disabled Homestead Exemption recipients. Local property tax reductions may be partially offset by tax rate increases in a number of jurisdictions. Additional administrative costs to the State Tax Department or local governments cannot be determined.



Memorandum






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