Date Requested:February 16, 2013
Time Requested:11:44 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1731 Introduced HB2308
CBD Subject: TRANSFERRING REAL PROPERTY
FUND(S)
General Revenue Fund, Local Governments
Sources of Revenue
General Fund Local Governments
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The purpose of this bill is to provide that the state excise tax on the privilege of transferring real property tax be used to reimburse the counties for regional jail fees
    
     According to the provisions of the bill, the state portion of the Excise Tax On the Privilege of Transferring Real Property would be reimbursed to the counties for the purposes of paying regional jail fees. The bill does not provide a means by which the counties will be reimbursed or offer any information regarding the amount that will be reimbursed to each county. The amount could be in proportion to regional jail fees or it could be the entire amount collected in each individual county. However, if the entire amount was allocated to the counties, the bill does not stipulate what any excess money would be dedicated to.
    
     Due to the lack of an effective date, collections will go directly to the counties effective thirty days from passage. There would be no increase in the amount of Property Transfer Tax collected. The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. Assuming that the entire amount of the state portion of the Property Transfer Tax were to be given back to the counties, the projected loss to the State General Revenue Fund in FY2014 is $10.3 million.
    
     There would be no additional costs to the State Tax Department.

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 -10,300,000
3. Explanation of above estimates (including long-range effect):
     According to the provisions of the bill, the state portion of the Excise Tax On the Privilege of Transferring Real Property would be reimbursed to the counties for the purposes of paying regional jail fees. The bill does not provide a means by which the counties will be reimbursed or offer any information regarding the amount that will be reimbursed to each county. The amount could be in proportion to regional jail fees or it could be the entire amount collected in each individual county. However, if the entire amount was allocated to the counties, the bill does not stipulate what any excess money would be dedicated to.
    
     Due to the lack of an effective date, collections will go directly to the counties effective thirty days from passage. There would be no increase in the amount of Property Transfer Tax collected. The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. Assuming that the entire amount of the state portion of the Property Transfer Tax were to be given back to the counties, the projected loss to the State General Revenue Fund in FY2014 is $10.3 million.
    
     There would be no additional costs to the State Tax Department.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The purpose of this bill is to provide that the state excise tax on the privilege of transferring real property tax be used to reimburse the counties for regional jail fees
    
     The bill states that the state portion of the Excise Tax On the Privilege of Transferring Real Property would be “expended to reimburse each county for funds expended to satisfy its regional jail fees.” However, the bill provides no guidance as to what amounts are to be reimbursed to each county. The amount could be in proportion to regional jail fees or it could be the entire amount collected in each individual county. Furthermore, if the entire amount collected in each county is to be returned to the county the bill gives no guidance as to how to treat any funds in excess of the county jail fees.