Date Requested:February 10, 2005
Time Requested:04:23 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005r606 intro sb149
CBD Subject: uniform minimum reporting
FUND(S)
Sources of Revenue
Other Fund
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 prescribe uniform minimum reporting and content requirements for payment in lieu of tax agreements, to require that all local levying bodies approve a payment in lieu of tax agreement, and to provide for allocation and distribution of payments in lieu of property tax. These rules would apply to payment in lieu of property tax agreements executed after June 30, 2005.
    
    The bill sets forth requirements for payment in lieu of property tax agreements. The requirements include the following: (1) the property to which the payment in lieu of property tax agreement relates must have been determined to be exempt from ad valorem property tax by the assessor of the county in which the property is situated or by the Tax Commissioner; (2) the payment in lieu of property tax agreement must be approved by all local levying bodies having taxing jurisdiction that would have received tax revenues from the property subject to the agreement, and (3) the payment in lieu of property tax agreement must contain a summary statement in a form prescribed by the Chief Inspector. Additionally, the bill as written, requires the owner of the tax exempt property to file a copy of the payment in lieu of property tax agreement, the initial summary report and each annual updated summary report with the county clerk with copies of the initial summary report and each annual updated summary report to the State Auditor and to the Secretary of the Department of Tax and Revenue. Payments received from the agreements must be distributed among all local levying bodies in the same proportions as property taxes are distributed. The bill requires adjustments to be made to the State School Aid program in counties receiving payments from the agreements covered by this proposal. The provisions of the bill apply to all payment in lieu of property tax agreements executed after June 30, 2005.
    
    According to our interpretation, passage of this bill would have no impact on State and local revenue.
    
    Passage of this bill will result in a minimal increase in administrative expenses to the State and local governments.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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):
    This bill prescribes uniform minimum reporting and content requirements for payment in lieu of tax agreements, to require that all local levying bodies approve a payment in lieu of tax agreement, and to provide for allocation and distribution of payments in lieu of property tax. These rules would apply to payment in lieu of property tax agreements executed after June 30, 2005.
    
    According to our interpretation, passage of this bill would have no impact on State and local revenue.
    
    Passage of this bill will result in a minimal increase in administrative expenses to the State and local governments.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to prescribe uniform minimum reporting and content requirements for payment in lieu of tax agreements, to require that all local levying bodies approve a payment in lieu of tax agreement, and to provide for allocation and distribution of payments in lieu of property tax. These rules would apply to payment in lieu of property tax agreements executed after June 30, 2005.
    
    The bill, as written, has several references to the Department of Tax and Revenue and the Secretary of the Department of Tax and Revenue. However, in addition to the name being changed to the Department of Revenue, the references should be to the State Tax Division, since the Tax Commissioner has overall responsibility for administering the Property Tax at the State level.
    
    Proposed W. Va. Code ยง11-3-9a(c) provides that the legislation apply to payment in lieu of tax agreements entered into after June 30, 2005. As written, the bill would also apply to payment in lieu of tax agreements already in existence and amended after March 9, 2003. Also, the bill, as written, contains a number of provisions in which the intent may be subject to varying interpretations.