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