Date Requested:January 08, 2014
Time Requested:01:49 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2014R1308 Introduced HB4008
CBD Subject: MOTOR VEHICLE FLEETS ASSESSED
FUND(S)
General Revenue Fund, Local Government funds
Sources of Revenue
General Fund,Other Fund Local Government Funds
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 permit a business that owns motor vehicles to have the value of those vehicles assessed in the tax district where the business has its primary base of operations instead of where those vehicles may actually be located.
    
     In addition to potentially shifting the Personal Property Tax on motor vehicles from one West Virginia tax district to another West Virginia tax district, the bill would also appear to permit businesses whose primary base of operations is outside West Virginia to designate an out-of-state location as the location of motor vehicles for West Virginia Personal Property Tax purposes even though the motor vehicle is actually located in West Virginia. The State Tax Department does not have sufficient information to determine how many motor vehicles may be assigned to a tax district other than the tax district in which the motor vehicle is actually located. Thus, we are unable to estimate the potential reduction in the General Revenue Fund or the potential revenue reduction in local government funds attributable to passage of this bill.
    
     If enacted, this bill may increase administrative costs of local governments by an unknown amount.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
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 would to permit a business that owns motor vehicles to have the value of those vehicles assessed in the tax district where the business has its primary base of operations instead of where those vehicles may actually be located.
    
     In addition to potentially shifting the Personal Property Tax on motor vehicles from one West Virginia tax district to another West Virginia tax district, the bill would also appear to permit businesses whose primary base of operations is outside West Virginia to designate an out-of-state location as the location of motor vehicles for West Virginia Personal Property Tax purposes even though the motor vehicle is actually located in West Virginia. The State Tax Department does not have sufficient information to determine how many motor vehicles may be assigned to a tax district other than the tax district in which the motor vehicle is actually located. Thus, we are unable to estimate the potential reduction in the General Revenue Fund or the potential revenue reduction in local government funds attributable to passage of this bill.
    
    
     If enacted, this bill may increase administrative costs of local governments by an unknown amount. The increase in administrative costs would be attributable to the additional documentation necessary to verify which motor vehicles might be subject to tax in the county (or are no longer subject to tax in the county).
    


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to permit a business that owns motor vehicles to have the value of those vehicles assessed in the tax district where the business has its primary base of operations instead of where those vehicles may actually be located.
    
     As written, the bill would appear to exempt business vehicles owned by out-of-state businesses from the West Virginia Personal Property Tax, even though those vehicles may be located in West Virginia on the July 1 assessment date. Also, the bill uses the phrase “motor vehicles” without providing a clear definition of the term. Absent a clear definition, the proposed revision could include off-road vehicles, heavy machinery, airplanes, or anything motorized. Additionally, the bill does not clarify the meaning of “uses”in the phrase “uses motor vehicles in it’s [sic] business operations.” Similarly, the phrase “primary base of operations” is not clearly defined and is somewhat inconsistent with language used elsewhere in the statute that is being amended.
    
     There appears to be a minor discrepancy between the title of the bill and the bill’s language. Where the title refers to “a business that owns vehicles,”, the bill’s language refers to “a business that owns and use motor vehicles in its business operations.” The title suggests that the bill would apply to any vehicles owned by a business, regardless of how they are used.