FISCAL NOTE
FUND(S):
General Revenue Fund, Local Government Funds
Sources of Revenue:
General Fund,Other Fund Local Government Funds
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 bill is to establish a new class of property on utility rights of ways and easements for taxation purposes. The bill names that new class as Class V and gives county commissions the option of adopting that Class V to their respective tax rolls. The bill establishes certain tax rates for Class V property.
As written, this bill would create a new classification of property for the purpose of levies. The new class (i.e., Class V) is defined in the bill as “all rights-of-ways and easement held or owned by a public utility. However, county commissions have the option of whether or not to adopt this classification of property.” the bill also establishes the maximum levy for Class V property.
Currently, the costs of obtaining easements and rights of way are included in the appraisals of public utility companies assessed by the Board of Public Works. The State Tax Department does not have sufficient information to determine the potential revenue impact of this proposal.
The separate assessment of the value of utility rights of way and easements would add significant additional administrative costs to the State Tax Department and local governments.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
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 bill would create a new classification of property for the purpose of levies. The new class (i.e., Class V) is defined in the bill as “all rights-of-ways and easement held or owned by a public utility. However, county commissions have the option of whether or not to adopt this classification of property.” the bill also establishes the maximum levy for Class V property.
Currently, the costs of obtaining easements and rights of way are included in the appraisals of public utility companies assessed by the Board of Public Works. The State Tax Department does not have sufficient information to determine the potential revenue impact of this proposal.
The separate assessment of the value of utility rights of way and easements would add significant additional administrative costs to the State Tax Department and local governments.
Memorandum
The stated purpose of this bill is to establish a new class of property on utility rights of ways and easements for taxation purposes. The bill names that new class as Class V and gives county commissions the option of adopting that Class V to their respective tax rolls. The bill establishes certain tax rates for Class V property.
As written, this bill gives County Commissions the option of adopting the new class of property. This may create disparities between the ways that the affected property is taxed from county to county and thus may be contrary to Article X, Section 1 of the West Virginia Constitution which requires that “taxation shall be equal and uniform throughout the State.” Additionally, the provisions of the bill may also conflict with current law dealing with the assessment of public service businesses. While the bill proposes a new class of property, the bill does not include the necessary language to exclude the property in the new class from the existing property classifications.
Person submitting Fiscal Note: Mark B. Muchow
Email Address: Roger.D.Cox@wv.gov