Date Requested:February 14, 2013
Time Requested:04:26 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1214 Introduced HB2015
CBD Subject: BARREN COAL PROPERTIES NO MONETARY VALUE
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 is to eliminate the ad valorem tax for barren coal properties.
    
     As written, the bill would establish that barren coal properties are of no monetary value and effective July 1, 2014, and thereafter, the value of barren coal properties for purposes of the Property Tax would be zero.
    
     According to our interpretation, passage of this bill would result in an annual decrease of roughly $40,000 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
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 -40,000
3. Explanation of above estimates (including long-range effect):
     Passage of this bill would establish that barren coal properties are of no monetary value and effective July 1, 2014, and thereafter, the value of barren coal properties for purposes of the Property Tax would be zero.
    
     According to our interpretation, passage of this bill would result in an annual decrease of roughly $40,000 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 B. Muchow
Email Address:
Roger.D.Cox@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.