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 permit the Legislature to exempt from ad valorem taxation tangible personal property directly used in commercial and industrial businesses, or such components thereof as the Legislature may in its discretion designate. As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2012. Passage of this resolution, in and of itself, will have no impact on current State and local revenue. If the proposed Amendment is subsequently ratified by voters, the Legislature would have authority to enact laws to exempt all or portions of tangible personal property directly used in commercial and industrial businesses. Due to the many possible variations of a subsequently enacted exemption, the State Tax Department is unable to accurately estimate the potential revenue impact. Additionally, the State Tax Department is unable to accurately estimate the additional administrative costs associated with adoption of the proposed Amendment and a subsequently enacted exemption.



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):


As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2012. Passage of this resolution, in and of itself, will have no impact on current State and local revenue. If the proposed Amendment is subsequently ratified by voters, the Legislature would have authority to enact laws to exempt all or portions of tangible personal property directly used in commercial and industrial businesses. Due to the many possible variations of a subsequently enacted exemption, the State Tax Department is unable to accurately estimate the potential revenue impact. Additionally, the State Tax Department is unable to accurately estimate the additional administrative costs associated with adoption of the proposed Amendment and a subsequently enacted exemption.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov