Date Requested:January 31, 2012
Time Requested:02:41 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1827 Introduced SB463
CBD Subject: EXPANDING ASSESSMENT EXCLUSIONS
FUND(S)
General Revenue Fund, local government funds
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 add items to those which are excluded from base assessed value and current assessed of real and personal property in the tax increment financing article.
    
    As written, this bill would change the definitions of “base assessed value” and “current assessed value” to exclude personal trailers, personal boats, personal campers, personal motor homes, personal ATVs, and personal motorcycles from the respective values for purposes of the West Virginia Tax Increment Financing Act. The current definitions exclude personal motor vehicles from the calculations.
    
    According to our interpretation, the changes proposed by this bill will only affect tax increment financing projects approved after passage of this bill. The West Virginia Tax Increment Financing Act defines “base assessed value” as the “taxable assessed value . . . upon the landbooks and personal property books of the assessor on July 1 of the calendar year preceding the effective date of the order or ordinance creating and establishing the development or redevelopment district.” Existing tax increment financing projects would have already calculated a “base assessed value” which would have provided the basis for the sale of bonds or other financing. Since the West Virginia Tax Increment Financing Act is meant to preserve the revenue each State and local jurisdiction was receiving before the creation of a tax increment financing district, passage of this bill will not reduce or increase the revenue any jurisdiction receives from property in the district. Any increase in tax on property within the defined district would be applied toward the financing for the project. The State Tax Department does not possess the necessary information to determine how many new development or redevelopment projects using the revised definitions for calculation of “base assessed value” and “current assessed value” in a tax increment financing plan may be initiated upon passage of this bill. Thus, we are unable to accurately estimate the amount of revenue that may be available for financing new tax increment projects.
    
    The State Tax Department, and possibly county assessors, will likely incur additional administrative costs due to passage of this bill due to the need to track such properties for purposes of exclusion.
    

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 0
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would change the definitions of “base assessed value” and “current assessed value” to exclude personal trailers, personal boats, personal campers, personal motor homes, personal ATVs, and personal motorcycles from the respective values for purposes of the West Virginia Tax Increment Financing Act. The current definitions exclude personal motor vehicles from the calculations.
    
    According to our interpretation, the changes proposed by this bill will only affect tax increment financing projects approved after passage of this bill. The West Virginia Tax Increment Financing Act defines “base assessed value” as the “taxable assessed value . . . upon the landbooks and personal property books of the assessor on July 1 of the calendar year preceding the effective date of the order or ordinance creating and establishing the development or redevelopment district.” Existing tax increment financing projects would have already calculated a “base assessed value” which would have provided the basis for the sale of bonds or other financing. Since the West Virginia Tax Increment Financing Act is meant to preserve the revenue each State and local jurisdiction was receiving before the creation of a tax increment financing district, passage of this bill will not reduce or increase the revenue any jurisdiction receives from property in the district. Any increase in tax on property within the defined district would be applied toward the financing for the project. The State Tax Department does not possess the necessary information to determine how many new development or redevelopment projects using the revised definitions for calculation of “base assessed value” and “current assessed value” in a tax increment financing plan may be initiated upon passage of this bill. Thus, we are unable to accurately estimate the amount of revenue that may be available for financing new tax increment projects.
    
    The State Tax Department, and possibly county assessors, will likely incur additional administrative costs due to passage of this bill due to the need to track such properties for purposes of exclusion.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to add items to those which are excluded from base assessed value and current assessed of real and personal property in the tax increment financing article.
    
    As written, this bill would change the definitions of “base assessed value” and “current assessed value” to exclude personal trailers, personal boats, personal campers, personal motor homes, personal ATVs, and personal motorcycles from the respective values for purposes of the West Virginia Tax Increment Financing Act. The current definitions exclude personal motor vehicles from the calculations. However, the bill does not provide guidance as to the effective date of the changes. Since existing tax increment financing projects have already calculated a “base assessed value” applicable to their financing plan, it is unclear if the changes proposed by the bill would apply to all projects or only new projects.