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 transfer all interest in real property to a coowner who has paid all taxes on the real property for a minimum of five years. As written, this bill provides that a co-owner of real property who pays all of the property taxes on the property for a period of five years shall become the sole owner of that property. The bill would require the other co-owners to transfer, by deed, their interests in the property to the individual who paid the taxes. The taxpaying co-owner could petition the circuit court for enforcement. According to our interpretation, passage of this bill would not change the amount of current taxes assessed and due on real and personal property. There would be little, if any, impact on taxes collected. Local governments, and the courts, may incur additional administrative costs attributable to passage of this bill.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	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

Explanation of above estimates (including long-range effect):

As written, this bill provides that a co-owner of real property who pays all of the property taxes on the property for a period of five years shall become the sole owner of that property. The bill would require the other co-owners to transfer, by deed, their interests in the property to the individual who paid the taxes. The taxpaying co-owner could petition the circuit court for enforcement. According to our interpretation, passage of this bill would not change the amount of current taxes assessed and due on real and personal property. There would be little, if any, impact on taxes collected. Local governments, and the courts, may incur additional administrative costs attributable to passage of this bill.

Memorandum

The stated purpose of this bill is to transfer all interest in real property to a coowner who has paid all taxes on the real property for a minimum of five years. As written, this bill provides that a co-owner of real property who pays all of the property taxes on the property for a period of five years shall become the sole owner of that property. The bill would require the other co-owners to transfer, by deed, their interests in the property to the individual who paid the taxes. The taxpaying co-owner could petition the circuit court for enforcement. There are some potential Constitutional issues that could arise from passage of this bill. The bill would require no notice to the other coowners, such as would allow them to protect their interests, nor would it give an innocent party without notice any recourse for redeeming their interest in the property. This may be in violation of W. Va. Const. Art III, Sec. 10, which provides that “No person shall be deprived of life, liberty, or property, without due process of law, and the judgement of his peers.”

Person submitting Fiscal Note: Mark B.Muchow
Email Address: Roger.D.Cox@wv.gov