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 prohibit increases in the assessed value of real property which is located in a county where a maximum excess levy is in effect, the property has not changed in tax classification and the increased value is more than two percent over the assessed value of the same property for the previous year.
    
    Assuming that the intent of this bill would be for a 2 percent increase in counties with a maximum amount allowed for an excess levy for county commissions, there would be a minimal loss in State revenue and a decrease in local government revenue of $700,000. This provision would currently affect just two counties.
    
    Additional administrative costs to the State Tax Department or local governments 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 -700,000


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


    Assuming that the intent of this bill would be for a 2 percent increase in counties with a maximum amount allowed for an excess levy for county commissions, there would be a minimal loss in State revenue and a decrease in local government revenue of $700,000. This provision would currently affect just two counties.
    
    Additional administrative costs to the State Tax Department or local governments would be minimal.
    



Memorandum


    The stated purpose of this bill is to prohibit increases in the assessed value of real property which is located in a county where a maximum excess levy is in effect, the property has not changed in tax classification and the increased value is more than two percent over the assessed value of the same property for the previous year.
    
    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.
     Person submitting Fiscal Note: Mark Muchow
     Email Address: kerri.r.petry@wv.gov