Date Requested:March 19, 2013
Time Requested:02:29 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2789 Introduced HB2984
CBD Subject: DEFINITION OF OWNERSHIP OF PROPERTY
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 provide that in the assessment of real property the word “owner” includes the trustee of a trust or a majority of the voting shareholders of a limited liability company or corporation who reside on the real property which is the subject of the trust or owned by a limited liability company or corporation and which has an annual production of agriculture or forest products that exceeds $5,000.
    
     As indicated in the stated purpose and as written in the bill, this bill would expand the definition of owner for purposes of the assessment of real property.
    
     According to our interpretation, the State Tax Department is unable to accurately estimate the potential revenue impact of this proposal as information on which properties have annual production of agriculture or forest products greater than $5,000 is not readily available. However, it is not anticipated that the revenue impact would be overly significant.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    

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 indicated in the stated purpose and as written in the bill, this bill would expand the definition of owner for purposes of the assessment of real property.
    
     According to our interpretation, the State Tax Department is unable to accurately estimate the potential revenue impact of this proposal as information on which properties have annual production of agriculture or forest products greater than $5,000 is not readily available. However, it is not anticipated that the revenue impact would be overly significant.
    
     Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    .
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to provide that in the assessment of real property the word “owner” includes the trustee of a trust or a majority of the voting shareholders of a limited liability company or corporation who reside on the real property which is the subject of the trust or owned by a limited liability company or corporation and which has an annual production of agriculture or forest products that exceeds $5,000.
    
     As written, the bill includes the terms “reside,” “forest products,” and “production” in the proposed revision without providing a definition of the terms. Additionally, it is not apparent that the production of agriculture or forest products that exceeds $5,000 requires the production to be sold. Additionally, questions may arise as to how and when a trustee, LLC or corporation “resides,” versus “occupies” or “possesses” real property that may make administration of the bill difficult.