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 amendment is to allow each county to increase the homestead exemption from $20,000 to an amount not to exceed $50,000 or an amount equal to fifty percent of the average property value in the county, whichever is greater.
The loss of revenue to the State and local governments cannot be determined. Many but not all local governments have the capacity to raise Property Tax rates to offset at least some portion of the lost revenue associated with any optional increase in Homestead Exemptions.
Additional cost to the State Tax Department or local governments or local governments cannot be determined.
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):
The loss of revenue to the State and local governments cannot be determined. The proposed bill does not change the Homestead Exemption by any discrete amount. Many but not all local governments have the capacity to raise Property Tax rates to offset at least some portion of the lost revenue associated with any optional increase in Homestead Exemptions.
Additional cost to the State Tax Department or local governments or local governments cannot be determined.
Memorandum
The stated purpose of this amendment is to allow each county to increase the homestead exemption from $20,000 to an amount not to exceed $50,000 or an amount equal to fifty percent of the average property value in the county, whichever is greater.
The authorization to allow the Homestead Exemption to be an amount equal to 50% of the average property value in the county can create a situation where the presence of industrial or natural resource properties could skew the exemption to an extremely high amount.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov