Date Requested:January 14, 2012
Time Requested:01:07 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1123 Carry Over HB2270
CBD Subject: ASSESSMENTS OF REAL PROPERTY
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
Over-all effect
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
3. 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
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    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.