FISCAL NOTE
Date Requested: March 10, 2025
Time Requested: 10:54 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2331 |
Comm. Sub. |
SB439 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Increases Revenue From Existing Sources, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to clarify that a wind power project is not a pollution control facility for purposes of ยง11-6A-1 et seq. of this code and is taxed as real property.
According to our interpretation, with passage of this bill, wind power plants would be assessed as real property, not pollution control facilities. As a result, taxable property valuations for such facilities would increase along with property tax assessments. There would be an increase of roughly $7.4 million in revenue annually. The estimated revenue gain would be roughly $2.9 million to the State General Revenue Fund, $2.0 million to local county school boards, and $2.4 million to county commissions. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2024 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula. The revenue gain would only affect State revenue and the revenue of seven counties.
Additional administrative costs would be minimal.
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 |
7,400,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, with passage of this bill, wind power plants would be assessed as real property, not pollution control facilities. As a result, taxable property valuations for such facilities would increase along with property tax assessments. There would be an increase of roughly $7.4 million in revenue annually. The estimated revenue gain would be roughly $2.9 million to the State General Revenue Fund, $2.0 million to local county school boards, and $2.4 million to county commissions. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2024 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula. The revenue gain would only affect State revenue and the revenue of seven counties.
Additional administrative costs would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov