FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 09:23 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1023 |
Introduced |
SB52 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
Local Revenue
Sources of Revenue:
Other Fund Local Revenue
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to tighten the transfer-tax provisions and remove the transfer-tax provisions and remove the loopholes that are being used to evade the payment of transfer taxes.
According to our interpretation, this bill amends the definition of document for purposes of determining which transfers are subject to the Property Transfer Tax. Transfers of real property where the value of property is $100 or less and quitclaim deeds would no longer be exempt from tax, and transfers between siblings would no longer be subject to tax. There would be some not readily quantifiable increase in county property transfer tax collections attributable to taxation of both small transfers and quitclaim deeds with more of the increases attributable to the taxation of quitclaim deeds. There would be some not readily quantifiable decrease in county property transfer tax collections attributable to the exemption for transfers between siblings.
Passage of this bill would have no impact on the General Revenue in FY2026 and in subsequent fiscal years. The Property Transfer Tax is a county government tax, not a State tax. Counties collect in total roughly $35 million per year in Property Transfer Tax.
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
According to our interpretation, this bill amends the definition of document for purposes of determining which transfers are subject to the Property Transfer Tax. Transfers of real property where the value of property is $100 or less and quitclaim deeds would no longer be exempt from tax, and transfers between siblings would no longer be subject to tax. There would be some not readily quantifiable increase in county property transfer tax collections attributable to taxation of both small transfers and quitclaim deeds with more of the increases attributable to the taxation of quitclaim deeds. There would be some not readily quantifiable decrease in county property transfer tax collections attributable to the exemption for transfers between siblings.
Passage of this bill would have no impact on the General Revenue in FY2026 and in subsequent fiscal years. The Property Transfer Tax is a county government tax, not a State tax. Counties collect in total roughly $35 million per year in Property Transfer Tax.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to tighten the transfer-tax provisions and remove the transfer-tax provisions and remove the loopholes that are being used to evade the payment of transfer taxes.
The proposed exclusion of “transfers between siblings” appears to be contrary to the stated purpose of this bill as the additional exclusion loosens the Property Transfer Tax provisions regarding transfers between siblings.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov