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 joint resolution is to authorize the exemption from property taxation, as determined by the Legislature by law, of personal property inventory in the form of raw materials, goods in process and finished goods employed exclusively in or resulting exclusively from manufacturing. The exemption of personal property inventory as stated above would result in an annual reduction in revenue of roughly $22.0 million for local levying bodies and of roughly $90,000 for the State General Revenue Fund. The State Tax Department will incur a one-time programming cost of $25,000. There would be no other additional administrative costs to the State Tax Department or local governments.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 25,000 0
Personal Services 0 0 0
Current Expenses 0 25,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -22,090,000


Explanation of above estimates (including long-range effect):


The exemption of personal property inventory in the form of raw materials, goods in process and finished goods employed exclusively in or resulting exclusively from manufacturing would result in an annual reduction in revenue of roughly $22.0 million for local levying bodies and of roughly $90,000 for the State General Revenue Fund. The cost reflected on the chart above is a one-time programming cost to the State Tax Department for computer programming changes on the Statewide property tax computer network. There would be no other additional administrative costs to the State Tax Department or local governments.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us