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 provide an alternative method of calculating the homestead exemption based on the average cost or value of the residential property by county. The exemption shall never be less than $20,000.
This bill proposes an amendment to the West Virginia Constitution increasing the exemption available for homesteads from the current $20,000 to not less than $20,000 and gives the Legislature the authority to provide tax relief by calculating a percentage of the average cost or value by county of any real property or personal property in the form of a mobile home used exclusively for residential purposes with the homestead exemption never less than $20,000. The impact of this proposal on State and local property tax revenue cannot be determined because the proposal does not specify an exact amount for the value of the homestead exemption.
Local property tax reductions associated with increases in Homestead Exemptions may be partially offset by tax rate increases in a number of jurisdictions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
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):
This bill proposes an amendment to the West Virginia Constitution increasing the exemption available for homesteads from the current $20,000 to not less than $20,000 and gives the Legislature the authority to provide tax relief by calculating a percentage of the average cost or value by county of any real property or personal property in the form of a mobile home used exclusively for residential purposes with the homestead exemption never less than $20,000. The impact of this proposal on State and local property tax revenue cannot be determined because the proposal does not specify an exact amount for the value of the homestead exemption.
Local property tax reductions associated with increases in Homestead Exemptions may be partially offset by tax rate increases in a number of jurisdictions.
Additional administrative costs for the State Tax Department for computer programming changes on the statewide property tax computer network cannot be determined. There would be no additional administrative costs for local governments.
Memorandum
The stated purpose of this resolution is to provide an alternative method of calculating the homestead exemption based on the average cost or value of the residential property by county. The exemption shall never be less than $20,000.
The proposed amendment raises concerns of equalization of property assessment throughout the State since the proposal would permit county by county deviation from such equalization which may violate Article X, Section 1 of the West Virginia Constitution.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov