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 motor vehicles, including automobiles, motorcycles, airplanes, trucks and tractors, that are older than twenty-five years from taxable personal property. The bill also requires automobiles and motorcycles to display valid current antique licenses and may not be used for daily transportation.
    
    The bill would result in an annual decrease of roughly $1 million in local property tax revenues and minimal loss in State revenue.
    
    Additional administrative costs associated with this bill would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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 -1,000,000


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


    The bill would result in an annual decrease of roughly $1 million in local property tax revenues and minimal loss in State revenue.
    
    Additional administrative costs associated with this bill would be minimal.
    



Memorandum


    The stated purpose of this bill is to exempt motor vehicles, including automobiles, motorcycles, airplanes, trucks and tractors, that are older than twenty-five years from taxable personal property. The bill also requires automobiles and motorcycles to display valid current antique licenses and may not be used for daily transportation.
    
    West Virginia Constitution Article X, Section 1 requires that taxation is to be equal and uniform and that it is to be taxed in proportion to its value. The bill does not appear to satisfy those requirements. Older motor vehicles are not included in the list of property tax exemptions in the West Virginia Constitution.
    
    



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