FISCAL NOTE



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 purpose of this bill is to amend provisions relating to challenges to increases in valuation and assessment of property for ad valorem property taxation. The bill allows a real property owner to submit an independent appraisal of the property to the assessor. It provides for notice to an owner of an increase in the assessed value that is greater than sixty percent of the value determined by an independent appraisal. The bill also provides that the assessor bear the burden of proof to show that the value of the independent appraisal is incorrect before the board of equalization and review and that the board assess the property based on the independent appraisal if found correct. The bill also establishes burden and degree of proof necessary to challenge an assessment or appraisal of property for ad valorem property taxation to be proof by a preponderance of the evidence. In addition to the bill’s provisions as indicated in the stated purpose above, passage of this bill would allow a property owner to submit an independent appraisal made by a real estate appraiser licensed in West Virginia in lieu of the periodic three-year valuations by county assessors. The bill would also lower the standard of proof for challenges of Property Tax assessments from the “clear and convincing evidence” standard to a “preponderance of the evidence” standard and the burden of challenging the appraisal would be shifted from the property owner to the assessor. The State Tax Department is unable to provide a quantitative estimate of the potential impact on tax revenue attributable to the passage of this bill, but passage of this bill would result in a reduction in the State General Revenue Fund and local revenues. Passage of this bill will increase administrative costs of local governments.



Fiscal Note Detail


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


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


In addition to the bill’s provisions as indicated in the stated purpose above, passage of this bill would allow a property owner to submit an independent appraisal made by a real estate appraiser licensed in West Virginia in lieu of the periodic three-year valuations by county assessors. The bill would also lower the standard of proof for challenges of Property Tax assessments from the “clear and convincing evidence” standard to a “preponderance of the evidence” standard and the burden of challenging the appraisal would be shifted from the property owner to the assessor. The State Tax Department is unable to provide a quantitative estimate of the potential impact on tax revenue attributable to the passage of this bill, but passage of this bill would result in a reduction in the State General Revenue Fund and local revenues. Passage of this bill will increase administrative costs of local governments.



Memorandum






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