Date Requested:February 13, 2013
Time Requested:06:52 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1832 Introduced SB99
CBD Subject: VALUE OF REAL PROPERTY PROHIBITED
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund Local Property Tax Revenu
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 prohibit increases in the assessed value of real property which is located in a county where a maximum excess levy is in effect, the property has not changed in tax classification and the increased value is more than two percent over the assessed value of the same property for the previous year.
    
     Notwithstanding the stated purpose of this bill, it is assumed that the intent of this bill would be to allow for a 2 percent increase in counties with a maximum amount allowed for an excess levy. According to our interpretation, passage of this bill would result in a minimal loss in State revenue and a decrease in local government revenue of roughly $400,000. Presently, only two counties are at the maximum excess levy rate.
    
     Additional administrative costs to the State Tax Department or local governments would be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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 -400,000
3. Explanation of above estimates (including long-range effect):
     The stated purpose of this bill is to prohibit increases in the assessed value of real property which is located in a county where a maximum excess levy is in effect, the property has not changed in tax classification and the increased value is more than two percent over the assessed value of the same property for the previous year.
    
     Notwithstanding the stated purpose of this bill, it is assumed that the intent of this bill would be to allow for a 2 percent increase in counties with a maximum amount allowed for an excess levy. According to our interpretation, passage of this bill would result in a minimal loss in State revenue and a decrease in local government revenue of roughly $400,000. Presently, only two counties (Fayette County and Wirt County) are at the maximum excess levy rate.
    
     Additional administrative costs to the State Tax Department or local governments would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to prohibit increases in the assessed value of real property which is located in a county where a maximum excess levy is in effect, the property has not changed in tax classification and the increased value is more than two percent over the assessed value of the same property for the previous year.
    
     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.