FISCAL NOTE
Date Requested: February 09, 2024
Time Requested: 01:47 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3377 |
Introduced |
SB619 |
|
|---|
| 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
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to repeal archaic provisions of the "Fair and Equitable Property Valuation" statutes adopted in 1990.
According to our interpretation, this bill removes the statutory caps on increases in Property Tax assessments in any year when the aggregate appraised value of property in a county or statewide exceeds a previous year’s projected property tax revenues. Passage of this bill could potentially increase revenue in some counties and municipalities, but we cannot estimate the revenue gains to these entities. For Tax Year 2023, nineteen counties and less than fifty municipalities had lower rates due to the statutory caps on increases. Under current law, local governments can elect to forgo the tax rollback with a public hearing. There would be no impact on revenue for county boards of education or the State.
There would be no additional administrative costs for the State Tax Department or local governments.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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):
According to our interpretation, this bill removes the statutory caps on increases in Property Tax assessments in any year when the aggregate appraised value of property in a county or statewide exceeds a previous year’s projected property tax revenues. Passage of this bill could potentially increase revenue in some counties and municipalities, but we cannot estimate the revenue gains to these entities. For Tax Year 2023, nineteen counties and less than fifty municipalities had lower rates due to the statutory caps on increases. Under current law, local governments can elect to forgo the tax rollback with a public hearing. There would be no impact on revenue for county boards of education or the State.
There would be no additional administrative costs for the State Tax Department or local governments.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov