FISCAL NOTE
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 the bill is to provide for the valuation of antique motor vehicles and classic motor vehicles for property tax purposes.
As written, this bill generally provides that antique and classic motor vehicles are to have appraised values of not less than $5,000 nor more than $10,000, based upon condition (e.g., running, driving, show quality, modified, etc.). However. the bill also provides that County Assessors may establish an appraised value exceeding $10,000 when other information shows the vehicle value to exceed $10,000.
According to our interpretation and due to the potential variability in the establishment of appraised values throughout the State, the State Tax Department cannot accurately determine the potential revenue impact on local government funds and the State General Revenue attributable to passage of this bill. However, if the appraised value of all current antique vehicles with a value greater than $10,000 was reduced to $10,000, then the reduction in Property Tax revenue would be roughly $200,000.
Passage of this bill would increase administrative costs for local governments by a moderate amount.
Fiscal Note Detail
| 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 |
Explanation of above estimates (including long-range effect):
Passage of this bill generally provides that antique and classic motor vehicles are to have appraised values of not less than $5,000 nor more than $10,000, based upon condition (e.g., running, driving, show quality, modified, etc.). However. the bill also provides that County Assessors may establish an appraised value exceeding $10,000 when other information shows the vehicle value to exceed $10,000.
According to our interpretation and due to the potential variability in the establishment of appraised values throughout the State, the State Tax Department cannot accurately determine the potential revenue impact on local government funds and the State General Revenue attributable to passage of this bill. However, if the appraised value of all current antique vehicles with a value greater than $10,000 was reduced to $10,000, then the reduction in Property Tax revenue would be roughly $200,000.
Passage of this bill would increase administrative costs for local governments by a moderate amount.
Memorandum
The stated purpose of the bill is to provide for the valuation of antique motor vehicles and classic motor vehicles for property tax purposes.
While the proposed bill appears to address some Constitutional concerns, the bill, as written, may still be contrary to the Constitution. Title X, Section 1 of the West Virginia Constitution requires (1) taxation to be equal and uniform throughout the State, (2) property is taxed in proportion to its value, and ((3) no one species of property which is taxed may be taxed higher than any other species of property of equal value.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov