Date Requested:January 27, 2012
Time Requested:02:24 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1668 Introduced SB442
CBD Subject: REAL PROPERTY ASSESSMENT INCREASES
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 provide for the phased in of an increase in assessment on real property over a four-year period when the current assessment of the property exceeds the value of the previous year’s assessment by fifty percent or more.
    
    Passage of this bill would result in a revenue loss of $10.0 million for local levying bodies and a decrease of $40,000 in State revenue.
    
    There would be a one-time cost of $20,000 to the State Tax Department for programming changes, etc. There would be no additional costs to local governments.

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 20,000 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 -10,000,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would result in a revenue loss of $10.0 million for local levying bodies and a decrease of $40,000 in State revenue.
    
    There would be a one-time cost of $20,000 to the State Tax Department for programming changes, etc. There would be no additional costs to local governments.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to provide for the phased in of an increase in assessment on real property over a four-year period when the current assessment of the property exceeds the value of the previous year’s assessment by fifty percent or more.
    
    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.