Date Requested: January 30, 2015
Time Requested: 02:48 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
1858 Introduced SJR3
CBD Subject: Const. Amendments


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 provide an alternative method of calculating the homestead exemption based on the average cost or value of the residential property by county. The exemption shall never be less than $20,000.
    
    This resolution proposes an amendment to the West Virginia Constitution giving the Legislature the authority to provide tax relief by calculating a percentage of the average cost or value by county of any real property or personal property in the form of a mobile home used exclusively for residential purposes with the Homestead Exemption never less than $20,000. The impact of this proposal on State and local property tax revenue cannot be determined because the proposal does not specify an exact amount for the value of the Homestead Exemption. In most counties, decreased tax revenue due to an increase in the Homestead Exemption would likely be at least partially offset by higher tax rates and tax burdens on other types of property, including both real property taxes and personal property taxes on vehicles, business inventory, machinery and equipment.
    
    Additional administrative costs for the State Tax Department would be $20,000. Additional administrative costs for local governments cannot be determined.
    



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):


    This resolution proposes an amendment to the West Virginia Constitution giving the Legislature the authority to provide tax relief by calculating a percentage of the average cost or value by county of any real property or personal property in the form of a mobile home used exclusively for residential purposes with the Homestead Exemption never less than $20,000. The impact of this proposal on State and local property tax revenue cannot be determined because the proposal does not specify an exact amount for the value of the Homestead Exemption. In most counties, decreased tax revenue due to an increase in the Homestead Exemption would likely be at least partially offset by higher tax rates and tax burdens on other types of property, including both real property taxes and personal property taxes on vehicles, business inventory, machinery and equipment.
    
    Additional administrative costs for the State Tax Department would be $20,000. Additional administrative costs for local governments cannot be determined.
    



Memorandum


    The stated purpose of this resolution is to provide an alternative method of calculating the homestead exemption based on the average cost or value of the residential property by county. The exemption shall never be less than $20,000.
    
    The proposed amendment raises concerns of equalization of property assessment throughout the State since the proposal would permit county by county deviation from such equalization which may violate Article X, Section 1 of the West Virginia Constitution.
    



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