Date Requested: January 28, 2015
Time Requested: 01:56 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1855 Introduced SB124
CBD Subject: Counties


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund,Other Fund local governments

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 incrementally redistribute an existing excise tax on the transfer of real property so that, over the course of five years, all moneys collected will be paid to the county where the property is situated instead of to the state. The bill requires that moneys paid to counties be exclusively dedicated to regional jails. The bill also makes stylistic changes.
    
    According to the provisions of the bill, the state portion of the Excise Tax on the Privilege of Transferring Real Property would be redistributed to the counties where the property is situated. The bill does provide for incremental transfers over a five-year period as the purpose indicates. If the bill passes, commencing July 1, 2015, excise tax collections would be distributed in the following manner: (1) For the first year, 80 percent to the state and 20 percent to the county; (2) For the second year. 60 percent to the state and 40 percent to the county; (3) For the third year, 40 percent to the state and 60 percent to the county; (4) For the fourth year, 20 percent to the state and 80 percent to the county, and (5) for the fifth and each succeeding year, 100 percent to the county. Collections are dedicated to regional jails as determined by the county commission, in consultation with the sheriff and the chief circuit court judge.
    
    According to our interpretation, passage of the bill, would result in an increase in county revenue ranging from an additional $2.7 million in FY2016 to $14.8 million in FY2020. However, the revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $2.7 million in FY2016 to $14.8 million in FY2020.
    
    
     State Share of County Share of Change in Change in
    
    Fiscal Property Property State County
    
    Year Transfer Tax Transfer Tax Revenue Revenue
    
    2016 $10,720,000 $2,680,000 -$2,680,000 $2,680,000
    
    2017 $7,980,000 $5,320,000 -$5,320,000 $5,320,000
    
    2018 $5,400,000 $8,100,000 -$8,100,000 $8,100,000
    
    2019 $2,840,000 $11,360,000 -$11,360,000 $11,360,000
    
    2020 $0 $14,800,000 -$14,800,000 $14,800,000
    
    There would be no additional administrative costs.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
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):


    According to the provisions of the bill, the state portion of the Excise Tax on the Privilege of Transferring Real Property would be redistributed to the counties where the property is situated. The bill does provide for incremental transfers over a five-year period as the purpose indicates. If the bill passes, commencing July 1, 2015, excise tax collections would be distributed in the following manner: (1) For the first year, 80 percent to the state and 20 percent to the county; (2) For the second year. 60 percent to the state and 40 percent to the county; (3) For the third year, 40 percent to the state and 60 percent to the county; (4) For the fourth year, 20 percent to the state and 80 percent to the county, and (5) for the fifth and each succeeding year, 100 percent to the county. Collections are dedicated to regional jails as determined by the county commission, in consultation with the sheriff and the chief circuit court judge.
    
    According to our interpretation, passage of the bill, would result in an increase in county revenue ranging from an additional $2.7 million in FY2016 to $14.8 million in FY2020. However, the revenue gains for counties are offset by revenue losses to the State General Revenue Fund. The projected loss to the State General Revenue Fund rises from $2.7 million in FY2016 to $14.8 million in FY2020.
    
    
     State Share of County Share of Change in Change in
    
    Fiscal Property Property State County
    
    Year Transfer Tax Transfer Tax Revenue Revenue
    
    2016 $10,720,000 $2,680,000 -$2,680,000 $2,680,000
    
    2017 $7,980,000 $5,320,000 -$5,320,000 $5,320,000
    
    2018 $5,400,000 $8,100,000 -$8,100,000 $8,100,000
    
    2019 $2,840,000 $11,360,000 -$11,360,000 $11,360,000
    
    2020 $0 $14,800,000 -$14,800,000 $14,800,000
    
    There would be no additional administrative costs.



Memorandum


    



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