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 extend the homestead exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse; and to allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value, subject to legislative review and approval, and subject to approval by a majority of the county’s voters voting at an election.
This bill proposes an amendment to the West Virginia Constitution extending the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse. In addition the proposed amendment would allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value. The impact of this proposal on State and local property tax revenue cannot be determined.
There would be a one-time cost of $40,000 to the State Tax Department. Other additional administrative costs to the State Tax Department 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):
This bill proposes an amendment to the West Virginia Constitution extending the Homestead Exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse. In addition the proposed amendment would allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value. The impact of this proposal on State and local property tax revenue cannot be determined.
There would be a one-time cost of $40,000 to the State Tax Department. Other additional administrative costs to the State Tax Department or local governments cannot be determined.
Memorandum
The stated purpose of this amendment is extend the homestead exemption to a surviving spouse who is under sixty-five years of age and not totally disabled under certain circumstances after the death of the qualifying spouse; and to allow each county the option to increase the homestead exemption from $20,000 to an amount not to fifty percent of the average residential property value, subject to legislative review and approval, and subject to approval by a majority of the county’s voters voting at an election.
There are some concerns in a percentage exemption based on sales in that county alone in that the exemption amount would be larger in some counties than it would be in others. While this proposal would change the Constitution to allow for this, it does not change the provision of the Constitution that calls for fair and equal taxation. Therefore, there would be conflicting constitutional provisions.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov