Date Requested:February 14, 2013
Time Requested:01:53 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1126 Introduced HJR11
CBD Subject: HOMESTEAD EXEMPTION INCREASE
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 resolution is extend the homestead exemption to a surviving spouse and to provide counties with the authority to increase the homestead exemption.
    
    This resolution 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. The revenue loss from extending the Homestead Exemption to surviving spouses would be minimal.
    
    In addition, the proposed amendment would allow each county the option to increase the Homestead Exemption from $20,000 to an amount not greater than 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. In most counties, decreased tax revenue due to an increase in the Homestead Exemption would likely be at least partially offset by higher tax rates and tax burdens on other types of property, including both real property taxes and personal property taxes on vehicles, business inventory, machinery and equipment.
    
    Additional administrative costs cannot be determined.

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 0
3. Explanation of above estimates (including long-range effect):
    This resolution 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. The revenue loss from extending the Homestead Exemption to surviving spouses would be minimal.
    
    In addition, the proposed amendment would allow each county the option to increase the Homestead Exemption from $20,000 to an amount not greater than 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. In most counties, decreased tax revenue due to an increase in the Homestead Exemption would likely be at least partially offset by higher tax rates and tax burdens on other types of property, including both real property taxes and personal property taxes on vehicles, business inventory, machinery and equipment.
    
    Additional administrative costs cannot be determined.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
    The stated purpose of this resolution is extend the homestead exemption to a surviving spouse and to provide counties with the authority to increase the homestead exemption.
    
    By allowing each county to set its own Homestead Exemption amount with approval from the Legislature and the voters of the county, the proposed amendment would be inconsistent with West Virginia Constitution Article X, Section 1 by creating unequal taxation among counties of the State.