Date Requested:March 22, 2013
Time Requested:11:53 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R2797 Introduced HB3052
CBD Subject: PROPERTY TRANSFER EXEMPTION
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
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 exempt from excise taxation the transfer of real property from an individual to a wholly-owned subsidiary or limited liability company.
    
     According to our interpretation this bill would create an exemption from the excise tax for the transfer of real property from an individual to his or her wholly-owned subsidiary or limited liability company. It accomplishes this by exempting deeds presented in these scenarios for transfer from the definition of “document” in West Virginia Code Section 11-22-1(4). As presently structured the current exemption for related business entities reduces the General Revenue Fund by approximately $100,000. However, at this time the State Tax Department does not have sufficient data on the number and scope of these transactions to estimate the increased loss to the General Revenue Fund created by the new exemption.
    
     There would be no additional administrative 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):
     According to our interpretation this bill would create an exemption from the excise tax for the transfer of real property from an individual to his or her wholly-owned subsidiary or limited liability company. It accomplishes this by exempting deeds presented in these scenarios for transfer from the definition of “document” in West Virginia Code section 11-22-1 (4). As presently structured the current exemption for related business entities reduces the General Revenue Fund by approximately $100,000. However, at this time the State Tax Department does not have sufficient data on the number and scope of these transactions to estimate the increased loss to the General Revenue Fund created by the new exemption.
    
     There would be no additional administrative costs to the State Tax Department.


Memorandum
Person submitting Fiscal Note:
Roger D. Cox
Email Address:
Roger.D.Cox@wv.gov