FISCAL NOTE
Date Requested: February 28, 2025
Time Requested: 03:58 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2075 |
Introduced |
HB3062 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
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 taxation real property used for farming, if the owner-farmer resides on the real property and receives at least 40 percent of his or her income from the farm.
The revenue loss associated with this bill could be roughly $3.4 million to $4.5 million a year based on State Tax Department data and information from the Department of Agriculture. Given normal fluctuations in farm income from one year to the next, farms could be exempt in some years and taxable in other years depending on changes in income ratio.
Additional administrative costs cannot be determined.
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):
The revenue loss associated with this bill could be roughly $3.4 million to $4.5 million a year based on State Tax Department data and information from the Department of Agriculture. Given normal fluctuations in farm income from one year to the next, farms could be exempt in some years and taxable in other years depending on changes in income ratio.
Additional administrative costs cannot be determined.
Memorandum
The stated purpose of this bill is to exempt from taxation real property used for farming, if the owner-farmer resides on the real property and receives at least 40 percent of his or her income from the farm.
The bill does not define the terms “farm” or “farming”. The bill is also unclear as to whether the real property would be exempt if an individual owner-farmer derives more than 40 percent of their income from farm property, but the farmer is married and files jointly and the farm income is less than 40 percent of the couple’s joint income.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov