Date Requested:February 13, 2012
Time Requested:04:51 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1702 Introduced HB4280
CBD Subject: COLLECTION OF DELINQUENT TAXES
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 is to allow counties to deduct the cost of collection of delinquent taxes from the distribution to levying bodies.
    
    The cost of collecting delinquent taxes Statewide cannot be determined, but the costs could be significant. The bill diverts funds from levying bodies to the Sheriff to cover the costs of collecting delinquent taxes. Actual outcome would depend upon the behavior of the 55 individual tax collection agencies. If this change would result in some greater incentive on the part of county sheriffs to pursue delinquent accounts that are collectible from a cost benefit standpoint, total net receipts for local governments might rise slightly.
    
    The administrative costs of deducting these costs before distributing monies to the levying bodies should 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 0
3. Explanation of above estimates (including long-range effect):
    The cost of collecting delinquent taxes Statewide cannot be determined, but the costs could be significant. The bill diverts funds from levying bodies to the Sheriff to cover the costs of collecting delinquent taxes. Actual outcome would depend upon the behavior of the 55 individual tax collection agencies. If this change would result in some greater incentive on the part of county sheriffs to pursue delinquent accounts that are collectible from a cost benefit standpoint, total net receipts for local governments might rise slightly.
    
    The administrative costs of deducting these costs before distributing monies to the levying bodies should be minimal.
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose is to allow counties to deduct the cost of collection of delinquent taxes from the distribution to levying bodies.
    
    W. Va. Code currently states that certain fees and costs shall be paid prior to payment to the various taxing units of the balance of the recovered taxes for delinquent taxes. The bill extends that repayment to any other fees and costs (including, but not limited to, legal fees and collection cost) incurred by the sheriff.