Date Requested:February 14, 2012
Time Requested:03:36 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R2153 Introduced HB4517
CBD Subject: BARREN COAL PROPERTIES
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 is to eliminate the ad valorem tax for barren coal properties.
    
    The bill would result in an annual decrease of roughly $45,000 in local property tax revenues and minimal loss in State revenue.
    
    Additional administrative costs associated with this bill 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 -45,000
3. Explanation of above estimates (including long-range effect):
    The bill would result in an annual decrease of roughly $45,000 in local property tax revenues and minimal loss in State revenue.
    
    Additional administrative costs associated with this bill would be minimal.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose is to eliminate the ad valorem tax for barren coal properties.
    
    Article X, Section 1 of the West Virginia Constitution provides that “all property shall be taxed in proportion to its value to be ascertained as directed by law”. The bill states that “barren coal” properties have no monetary value. The bill, as written, allows “barren coal” property to be taxed in a way that is not proportionate to its value, which may possibly violate the constitutional provision.