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 amended version of this bill ensures uniformity in the valuation of used motor vehicles for assessment purposes. In addition, the amended version values motor vehicles which are more than forty years old, display a valid current antique license plate and are not used for daily transportation at the lowest listed value not to exceed $200.
The portion of the bill concerning used motor vehicles simply codifies current practice and would have no revenue impact. Valuing automobiles and motorcycles that are more than forty years old at $200 or less would result in an annual decrease of $490,000 in local property tax revenues and minimal loss in State revenue.
There would be no additional administrative costs.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2010 Increase/Decrease (use"-") |
2011 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 |
-490,000 |
Explanation of above estimates (including long-range effect):
The portion of the bill concerning used motor vehicles simply codifies current practice and would have no revenue impact. Valuing automobiles and motorcycles that are more than forty years old at $200 or less would result in an annual decrease of $490,000 in local property tax revenues and minimal loss in State revenue.
There would be no additional administrative costs.
Memorandum
The amended version of this bill ensures uniformity in the valuation of used motor vehicles for assessment purposes. In addition, the amended version values motor vehicles which are more than forty years old, display a valid current antique license plate and are not used for daily transportation at the lowest listed value not to exceed $200.
A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to value antique vehicles in this manner. The Constitution states that “taxation shall be equal and uniform throughout the state and all property, both real and personal, shall be taxed in proportion to its value to be ascertained as directed by law.” This provision does not allow for antique vehicles to be taxed in proportion to its value; it sets an arbitrary value. It is also not equal and uniform as there are vehicles which are ineligible for this special treatment because they do not display a valid current antique license plate.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov