FISCAL NOTE
Date Requested: February 14, 2025
Time Requested: 01:41 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2969 |
Introduced |
HB2379 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, Local Governments
Sources of Revenue:
Other 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.
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 provide that for every three years a firefighter is employed they shall be eligible for a 25% reduction in their real property taxes and after 12 years of service the real property tax shall be eliminated.
The revenue impact of this proposal cannot be determined. We have no data on the type and value of real property owned by volunteer firefighters.
Additional administrative costs to the State or local governments 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):
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.
The revenue impact of this proposal cannot be determined. We have no data on the type and value of real property owned by volunteer firefighters.
Additional administrative costs to the State or local governments cannot be determined.
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 provide that for every three years a firefighter is employed they shall be eligible for a 25% reduction in their real property taxes and after 12 years of service the real property tax shall be eliminated.
The bill, as written, would be difficult to administer. No agency or governing body has been granted the authority to administer or make rules to administer the exemption. The bill also fails to specify
• what information must be provided to prove that a taxpayer is eligible for the exemption;
• who is responsible for collecting and submitting such requisite information;
• who is responsible for reviewing and/or collecting any information required to determine whether a taxpayer is eligible for the exemption;
• how the exemption should be imposed on July 1, 2026. For example, should a “volunteer firefighter” that has been “employed as [an] active member]” for 12+ years automatically receive a 100% exemption when the language only breaks down each additional 3 years by “an additional 25 percent” or will the clock restart from the internal effective date and then gradually increase by 25% every 3 years?
• what should happen if a firefighter meets the requirement for an additional 25 percent reduction in the middle of the tax year; and
• whether or how the tax should apply when an eligible taxpayer owns the property with a spouse or other family member.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov