FISCAL NOTE
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local property tax
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to gradually exempt from property taxes over a period of three years, personal property, including livestock employed exclusively in agriculture and products of agriculture, while owned by the producer.
Assuming that the intent of this bill is to exempt only Class I personal property, passage of this bill would result in revenue losses to local governments as shown below.
Losses to Local Governments
Year 1 $290,000
Year 2 580,000
Year 3 and each year thereafter 870,000
Revenue losses for the State would be minimal.
The Tax Department would incur $20,000 in additional costs in the first year for programming costs. Other additional costs to the Tax Department and local governments cannot be determined.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
20,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
20,000 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
-290,000 |
-870,000 |
Explanation of above estimates (including long-range effect):
Assuming the intent of this bill is to exempt only Class I personal property, passage of this bill would result in revenue losses to local governments as shown below.
Loss to Local Governments
Year 1 $290,000
Year 2 580,000
Year 3 and each year thereafter 870,000
Revenue losses for the State would be minimal.
The Tax Department would incur $20,000 in additional costs in the first year for programming costs. Other additional costs to the Tax Department and local governments cannot be determined.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us