Date Requested:February 25, 2013
Time Requested:02:38 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2312 Introduced SB362
CBD Subject: REAL PROPERTY TRANSFER TAX
FUND(S)
General Revenue Fund, Local Governments
Sources of Revenue
General Fund,Other 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 stated purpose of this bill is to incrementally redistribute an existing excise on the transfer of real property so that, over the course of five years, all moneys collected will be paid to the county where the property is situate instead of the state and require that moneys paid to the counties by exclusively dedicated to regional jails.
    
     According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
    
     State Share County Share
    FY2014 $8,240,000 $2,060,000
    FY2015 $6,840,000 $4,560,000
    FY2016 $4,760,000 $7,140,000
    FY2017 $2,460,000 $9,840,000
    FY2018 $0 $12,900,000
    
    The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $2.06 million in FY2014 to $12.9 million in FY2018.
    
     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 0
3. Explanation of above estimates (including long-range effect):
     The purpose of this bill is to incrementally redistribute an existing excise on the transfer of real property do that over the course of five years, all moneys collected will be paid to the county where the property is situate instead of the state and require that moneys paid to the counties by exclusively dedicated to regional jails.
    
     According to the provisions of the bill, State Property Transfer Tax collections will be transferred for county use over a five-year phase-in period. There would be no increase in the amount of Property Transfer Tax collected. Passage of this bill would result in the distribution of the State portion of the Property Transfer tax as follows:
    
     State Share County Share
    FY2014 $8,240,000 $2,060,000
    FY2015 $6,840,000 $4,560,000
    FY2016 $4,760,000 $7,140,000
    FY2017 $2,460,000 $9,840,000
    FY2018 $0 $12,900,000
    
     The revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $2.06 million in FY2014 to $12.9 million in FY2018.
    
     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