FISCAL NOTE
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local governments
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 incrementally redistribute an existing excise tax on the transfer of real property so that, over the course of five years, all moneys collected will be paid to the county where the property is situate instead of the state and to require the moneys paid to counties be exclusively dedicated to regional jails.
According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
State Counties
FY 2013 $6,800,000 $1,700,000
FY 2014 $5,310,000 $3,540,000
FY 2015 $3,744,000 $5,616,000
FY 2016 $1,904,000 $7,616,000
FY 2017 $0 $9,870,000
The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $1.7 million in FY2013 to $9.9 million in FY2017.
There would be no additional costs to the State Tax Department.
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 |
0 |
Explanation of above estimates (including long-range effect):
According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
State Counties
FY 2013 $6,800,000 $1,700,000
FY 2014 $5,310,000 $3,540,000
FY 2015 $3,744,000 $5,616,000
FY 2016 $1,904,000 $7,616,000
FY 2017 $0 $9,870,000
The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $1.7 million in FY2013 to $9.9 million in FY2017.
There would be no additional costs to the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov