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 increase the homestead exemption to a maximum of $70,000, each county is to decide the amount of the exemption; and to permit each county to stabilize an assessed valuation of any real property, or of personal property in the form of a mobile home, for senior citizens.
The increase in the Homestead Exemption from $20,000 to $70,000 would result in a revenue loss of $41.6 million annually for local levying bodies and an increase of $5.0 million in General Revenue Fund collections. The Tax Department does not have the information to quantify the revenue consequences if counties chose to stabilize assessed valuations on some real property. The amendment allows counties to elect to stabilize the assessed value property used exclusively as the residence of a person age sixty-five or older.
The State Tax Department will incur a one-time programming cost of $40,000. 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 |
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):
The increase in the Homestead Exemption from $20,000 to $70,000 would result in a revenue loss of $41.6 million annually for local levying bodies and an increase of $5.0 million in General Revenue Fund collections. The Tax Department does not have the information to quantify the revenue consequences if counties chose to stabilize assessed valuations on some real property. The amendment allows counties to elect to stabilize the assessed value property used exclusively as the residence of a person age sixty-five or older.
The State Tax Department will incur a one-time programming cost of $40,000. 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