Date Requested:February 15, 2013
Time Requested:03:43 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1239 Introduced HB2328
CBD Subject: DELINQUENT TAX COLLECTION COSTS
FUND(S)
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund Local Government Funds
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 allow counties to deduct the cost of collection of delinquent taxes from the distribution to levying bodies.
    
     As written, this bill would expand the ability of the Sheriff to deduct the cost of collection of delinquent taxes from the revenue to be distributed to levying bodies. In addition to the costs that the Sheriff is currently permitted to deduct, the bill proposes to include any other fees and cost (including, but not limited to, legal fees and collection cost) to those costs that can be deducted prior to the distribution of the tax associated with the delinquency.
    
     The cost of collecting delinquent taxes Statewide cannot be determined, but the costs could be significant. The bill diverts funds from levying bodies to the Sheriff to cover the costs of collecting delinquent taxes. The actual change in revenue attributable to passage of this bill would depend upon the behavior of the 55 individual tax collection agencies. If this change would result in some greater incentive on the part of County Sheriffs to pursue delinquent accounts that are collectible from a cost benefit standpoint, total net receipts for local governments might rise slightly.
    
     Additional administrative costs to local governments attributable to passage of this bill should 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 0
3. Explanation of above estimates (including long-range effect):
     Passage of this bill would expand the ability of the Sheriff to deduct the cost of collection of delinquent taxes from the revenue to be distributed to levying bodies. In addition to the costs that the Sheriff is currently permitted to deduct, the bill proposes to include any other fees and cost (including, but not limited to, legal fees and collection cost) to those costs that can be deducted prior to the distribution of the tax associated with the delinquency.
    
     The cost of collecting delinquent taxes Statewide cannot be determined, but the costs could be significant. The bill diverts funds from levying bodies to the Sheriff to cover the costs of collecting delinquent taxes. The actual change in revenue attributable to passage of this bill would depend upon the behavior of the 55 individual tax collection agencies. If this change would result in some greater incentive on the part of County Sheriffs to pursue delinquent accounts that are collectible from a cost benefit standpoint, total net receipts for local governments might rise slightly.
    
     Additional administrative costs to local governments attributable to passage of this bill should 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 allow counties to deduct the cost of collection of delinquent taxes from the distribution to levying bodies.
    
     The title of the bill states that it allows counties to deduct the cost of collection of delinquent taxes from the distribution of revenue to levying bodies. W. Va. Code ยง11A-2-2 currently states that certain fees and costs shall be paid prior to payment to the various taxing units of the balance of the recovered taxes for delinquent taxes. The bill extends that repayment to any other fees and costs (including, but not limited to, legal fees and collection cost) incurred by the Sheriff.