FISCAL NOTE
Date Requested: February 14, 2017
Time Requested: 01:33 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2099 |
Introduced |
HB2434 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local property tax
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 provide for reassessment of property damaged by natural disaster for purposes of property taxes.
The State Tax Department has no way to quantify the tax impact of natural disasters. Assessors should be recognizing such value losses in any tax year after a disaster as part of their normal duties.
Costs associated with filed reviews of damaged areas could be substantial to local governments. Additional costs to the State Tax Department would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
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):
The State Tax Department has no way to quantify the tax impact of natural disasters. Assessors should be recognizing such value losses in any tax year after a disaster as part of their normal duties.
Costs associated with filed reviews of damaged areas could be
substantial to local governments. Additional costs to the State Tax Department would be minimal.
Memorandum
The stated purpose of this bill is to provide for reassessment of property damaged by natural disaster for purposes of property taxes.
The bill would require assessors to “promptly and diligently inquire of any landowner or resident agents of any nonresident landowner whose property may have been damaged as a result of natural disaster,” and “assess and promptly reflect the changes in value in the current landbook and in the previous year’s landbook, if the prior year’s property tax bill is not yet due.” The bill places a potentially large burden on assessors.
The bill would require assessors to make retrospective changes in the prior year’s landbook if the damage occurs after the landbooks have been turned over to the sheriff, but before the taxes have become due. This is at odds with other sections of the Code, which bar the assessor from making changes in the landbooks after they have been submitted for equalization and review by the county commission.
In addition, the bill does not define “natural disaster”.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov