Date Requested: February 18, 2015
Time Requested: 10:13 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2959 Introduced SJR6
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 submit the proposed "County Economic Development Amendment" to the Constitution of the State to the people of the state for ratification or rejection at the general election of 2016.
    
    The resolution would put an amendment before the voters that would allow for the reallocation of property tax revenues to finance capital improvements to infrastructure for approved projects. Currently, the resolution would apply to seven counties. By Tax Year 2023, the reallocations would be $4.0 million annually with a loss in revenue of $2.1 million to the General Revenue Fund, $1.6 million to county commissions and $240,000 to county school boards. The distribution of estimated cost is based on information from taxes levied as reported in the FY 2015 Classified Assessed Valuations Taxes Levied publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
    
    Additional administrative costs to the State Tax Department would be minimal. Additional costs to 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):


    The resolution would put an amendment before the voters that would allow for the reallocation of property tax revenues to finance capital improvements to infrastructure for approved projects. Currently, the resolution would apply to seven counties. By Tax Year 2023, the reallocations would be $4.0 million annually with a loss in revenue of $2.1 million to the General Revenue Fund, $1.6 million to county commissions and $240,000 to county school boards. The distribution of estimated cost is based on information from taxes levied as reported in the FY 2015 Classified Assessed Valuations Taxes Levied publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
    
    Additional administrative costs to the State Tax Department would be minimal. Additional costs to local governments cannot be determined.
    



Memorandum


    The stated purpose of this resolution is to submit the proposed "County Economic Development Amendment" to the Constitution of the State to the people of the state for ratification or rejection at the general election of 2016.
    
    It is not clear why a Constitutional amendment would be needed. Based on Article X, Section 6a of the West Virginia Constitution, the Legislature has the authority to pass legislation to accomplish the goals of the amendment.
    



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