Date Requested:February 08, 2005
Time Requested:06:29 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R502 Intro SB20
CBD Subject: Certain Property Exempt
General Revenue Fund, local governments
Sources of Revenue
General Fund,Other Fund Local property tax revenu
Legislation creates:
A New Program

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 taxation streets or rights-of-way used for ingress and egress in a subdivision when the streets or rights-of-way have been conveyed to a duly incorporated homeowners’ association. Prior to qualifying for the exemption it must be demonstrated that the streets or rights-of-way have been dedicated for public use in an instrument or record in the land books of the county in which the subdivision is located.
    The exemption of streets or rights-of-way for ingress and egress in a subdivision would result in a minimal decrease in State and local government revenue.
    Additional administrative costs would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
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):
    The Tax Department cannot quantify the revenue losses due to an exemption for streets or right-of-ways used for ingress and egress in a subdivision. However, any revenue loss to the State or local governments would be minimal.
    Additional administrative costs would be minimal.

Person submitting Fiscal Note:
Mark Muchow
Email Address:
    The primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt privately owned streets from ad valorem taxation. Only property used for certain activities may be exempted, and it does not appear that this property will qualify. Even if the property use does qualify for exemption, there is a question as to whether other streets in a subdivision that are not located at the entry to the subdivision will qualify.
    In addition to the proposed change relating to streets or rights-of-way used for ingress and egress in a subdivision, this bill proposes changes to other enumerated exemptions within W. Va. Code §11-3-9. However, these proposed changes are not stated in the bill title or in the note to the bill.