Date Requested: February 09, 2015
Time Requested: 10:49 AM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1134 Introduced HB2087
CBD Subject: Real and Personal Prop.


FUND(S):



Sources of Revenue:

Special Fund,Other Fund School Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The proposed legislation is intended to permit surface owners to purchase the mineral interests which lay below the property when those mineral interests become subject to a tax lien. The legislation also established procedures, requires notice; and, establishes purchase prices. Also, the proposed legislation would establish certain nonrefundable $20 administrative fees; modifies notices to redeem which are sent to property owners; provides a procedure in the event more than one surface owner seeks to purchase the delinquent mineral interests; and, provides remedies related to tax sales. According to our records, if this legislation would have been in effect in the prior year, it would have created additional cost to the State Auditor’s Office approximating $10,000 per year. However, we believe there would be consequential additional costs for would-be purchasers, primarily related to additional notice expenses and legal expenses for more involved title searches which we have estimated would result in potential additional costs to purchasers of approximately $1,570,000 per year. Lastly, we are concerned that these potential additional costs to would-be purchasers could negatively impact delinquent land sales and lengthen the amount of time required to bring lands back onto the tax rolls. If any such result were realized, it would have negative impacts on the various County budgets, including those of the County School Boards.



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 10,000 10,000
Personal Services 0 0 0
Current Expenses 0 10,000 10,000
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):


    



Memorandum


    



    Person submitting Fiscal Note: Michael E. Sizemore, CPA
    Email Address: Mike.Sizemore@wvsao.gov