Date Requested:February 21, 2013
Time Requested:05:17 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1289 Introduced HB2104
CBD Subject: PROPERTY TAX MAY BE PAID QUARTERLY
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 allow quarterly payment of real and personal property taxes.
    
     As written, this bill provides that beginning July 1, 2013 current taxes on real and personal property may be paid as follows: the first quarterly installment is payable on September 1 of the year for which the assessment is made and becomes delinquent on October 1; the second quarterly installment is payable on the following January 1 and becomes delinquent on February 1; the third quarterly installment is payable on the following March 1 and becomes delinquent on April 1, and the fourth quarterly installment is payable on the following August 1 and becomes delinquent on September 1.
    
     According to our interpretation, passage of this bill would not change the amount of current taxes assessed and due on real and personal property. However, since the proposed fourth quarterly installment would be made in a fiscal year different from the first three quarterly installments, some funds that would have been collected in FY2014 would be delayed until FY2015. The State Tax Department does not have sufficient information to determine how much revenue would be moved out of FY2014. The change in revenue deposit timing may significantly impact some county budgets for FY2014. Also, assuming that some current tax collections are deposited into interest bearing accounts prior to their expenditure, the additional installment payments may result in a minor reduction in earned interest.
    
     Passage of this bill may result in some additional administrative costs to County Sheriff’s Offices.
    

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 beginning July 1, 2013 current taxes on real and personal property may be paid as follows: the first quarterly installment is payable on September 1 of the year for which the assessment is made and becomes delinquent on October 1; the second quarterly installment is payable on the following January 1 and becomes delinquent on February 1; the third quarterly installment is payable on the following March 1 and becomes delinquent on April 1, and the fourth quarterly installment is payable on the following August 1 and becomes delinquent on September 1.
    
     According to our interpretation, passage of this bill would not change the amount of current taxes assessed and due on real and personal property. However, since the proposed fourth quarterly installment would be made in a fiscal year different from the first three quarterly installments, some funds that would have been collected in FY2014 would be delayed until FY2015. The State Tax Department does not have sufficient information to determine how much revenue would be moved out of FY2014. The change in revenue deposit timing may significantly impact some county budgets for FY2014. Also, assuming that some current tax collections are deposited into interest bearing accounts prior to their expenditure, the additional installment payments may result in a minor reduction in earned interest.
    
     Passage of this bill may result in some additional administrative costs to County Sheriff’s Offices.
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to allow quarterly payment of real and personal property taxes.
    
     As written, the changes proposed by the bill would allow payment of real and personal property taxes in a set schedule of four installments. However, the proposed changes to the Statute did not repeal the current two installment schedule. The two installment payment schedule and the four installment payment schedule each have designated dates for which a scheduled installment payment would become delinquent that are not the same. Since a payment that can be classified as delinquent for the first method may not necessarily be delinquent for the second method, this may result in confusion for Taxpayers and collectors alike.