FISCAL NOTE
Date Requested: January 12, 2024
Time Requested: 05:36 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1283 |
Introduced |
SB315 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
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 ad valorem property tax all property used for divine worship, including parts of those properties that are used for educational and other charitable purposes.
The revenue loss associated with this bill cannot be determined but would not be substantial.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 revenue loss associated with this bill cannot be determined but would not be substantial.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to exempt from ad valorem property tax all property used for divine worship, including parts of those properties that are used for educational and other charitable purposes.
A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt this type of property from ad valorem taxation. Other than specified exemptions provided for in the Constitution or in adopted amendments to the Constitution (e.g., Class I intangibles, freeport inventories, farm personal property), only property used for certain activities (i.e., educational, literary, scientific, religious or charitable purposes) may be exempted. Provisions of this bill in §11-3-9(a)(5)(B) provide an exemption for “other activities, the purposes of supporting the community, and which are non-profit”. “Other activities” is a broad category and is not defined. “Purposes of supporting the community” is vague and also not defined. Also, “non-profit” is not the same as “charitable”.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov