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 resolution is to authorize the exemption from property taxation of manufacturing inventory and other tangible personal property, as determined by the Legislature.
According to our interpretation, ratification of a Constitutional Amendment regarding manufacturing inventory and other tangible personal property would provide State lawmakers with increased flexibility in determining future policy regarding personal property taxes on manufacturing inventory, other business personal property and automobiles. The resolution allows the Legislature to exempt by law one or more types of personal property from the Property Tax. The proposed change does not mandate the complete exemption of personal property from the Property Tax. Significant changes in local tax policy would have to be balanced with the fiscal needs of local governments.
Additional administrative costs to the State Tax Department associated with enactment of this proposal would be approximately $25,000.
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 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, ratification of a Constitutional Amendment regarding manufacturing inventory and other tangible personal property would provide State lawmakers with increased flexibility in determining future policy regarding personal property taxes on manufacturing inventory, other business personal property and automobiles. The resolution allows the Legislature to exempt by law one or more types of personal property from the Property Tax. The proposed change does not mandate the complete exemption of personal property from the Property Tax. Significant changes in local tax policy would have to be balanced with the fiscal needs of local governments.
Additional administrative costs to the State Tax Department associated with enactment of this proposal would be approximately $25,000.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us