Date Requested:February 21, 2013
Time Requested:04:22 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2042 Introduced SB138
CBD Subject: CO-OWNER OF PROPERTY PAYS TAXES
FUND(S)
General Revenue Fund, Local Government Funds
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
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):
     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
Person submitting Fiscal Note:
Mark B.Muchow
Email Address:
Roger.D.Cox@wv.gov
     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.”