Date Requested:February 16, 2012
Time Requested:03:57 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
Introduced HJR113
CBD Subject: HOMESTEAD EXEMPTION INCREASE AMENDMENT
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 amendment is extend the homestead exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse; and to allow each county the option to increase the homestead exemption from $20,000 to an amount not more than fifty percent of the average residential property value, subject to legislative review and approval, and subject to approval by a majority of the county’s voters voting at an election.
    
    This bill proposes an amendment to the West Virginia Constitution extending the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse. In addition the proposed amendment would allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value. The impact of this proposal on State and local property tax revenue cannot be determined because the proposal does not change the Homestead Exemption to any specific amount.
    
    There would be a one-time cost of $20,000 to the State Tax Department for programming changes and changing and printing the Homestead Exemption forms. 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 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):
    This bill proposes an amendment to the West Virginia Constitution extending the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse. In addition the proposed amendment would allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value. The impact of this proposal on State and local property tax revenue cannot be determined.
    
    There would be a one-time cost of $40,000 to the State Tax Department. Other additional administrative costs to the State Tax Department or local governments cannot be determined.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this amendment is extend the homestead exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse; and to allow each county the option to increase the homestead exemption from $20,000 to an amount not more than fifty percent of the average residential property value, subject to legislative review and approval, and subject to approval by a majority of the county’s voters voting at an election.
    
    By allowing each county to set its own Homestead Exemption, the proposed amendment would be inconsistent with West Virginia Constitution Article X, Section 1, which requires that property taxes be equal and uniform throughout the State.