Date Requested: February 18, 2015
Time Requested: 10:13 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2869 Introduced HJR23
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 exempt each volunteer emergency service worker, including each volunteer firefighter, from ad valorem property taxation on the first $30,000 of assessed value of his or her primary residence.
    
    Although the stated purpose allows a $30,000 Homestead Exemption for volunteer firefighters, the bill, as written, actually allows a $30,000 Homestead Exemption for volunteer emergency workers, including volunteer firefighters. The loss of revenue to the State and local governments cannot be readily determined, but the revenue impact on local governments could be substantial. In most counties, decreased tax revenue due to this additional 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.
    
    There would be a one-time cost of $30,000 to the State Tax Department for programming changes and changing and printing the Homestead Exemption forms. There would also be some additional costs to local governments.
    



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):


    The bill, as written, actually allows a $30,000 Homestead Exemption for volunteer emergency workers, including volunteer firefighters. The loss of revenue to the State and local governments cannot be readily determined, but the revenue impact on local governments could be substantial. In most counties, decreased tax revenue due to this additional 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.
    
    There would be a one-time cost of $30,000 to the State Tax Department for programming changes and changing and printing the Homestead Exemption forms. There would also be some additional costs to local governments.
    
    



Memorandum


    The stated purpose of this resolution is to exempt each volunteer emergency service worker, including each volunteer firefighter, from ad valorem property taxation on the first $30,000 of assessed value of his or her primary residence.
    
    The bill does not define volunteer emergency workers. The provisions for this new Homestead Exemption are different from those for the Homestead Exemption for senior citizens and taxpayers who are permanently and totally disabled.
    
    



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