Date Requested: February 24, 2015
Time Requested: 01:58 PM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
3179 Introduced HB2967
CBD Subject: Real and Personal Prop.


FUND(S):

General Revenue Fund, Local Government Funds

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 bill is to provide that the appraised value of an antique motor vehicle is $3000 for purposes of ad valorem property taxes.
    
    As written, this bill provides that antique motor vehicles are to have appraised values of $3,000 or less. The State Tax Department does not have sufficient information to determine which vehicles are registered as an antique vehicle; however, if all vehicles more than 25 years old and currently appraised at more than $3,000 were reappraised with a value of $3,000, the reduction in revenue would be roughly $670,000 per year. The revenue reduction would be borne primary by local governments.
    
    The State Tax Department would incur additional administrative costs of $30,000 for programming changes attributable to passage of this bill. Additionally, county assessors would incur additional administrative costs attributable to passage of this bill to compile and maintain information on qualifying antique vehicles.
    



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 -670,000


Explanation of above estimates (including long-range effect):


    As written, this bill provides that antique motor vehicles are to have appraised values of $3,000 or less. The State Tax Department does not have sufficient information to determine which vehicles are registered as an antique vehicle; however, if all vehicles more than 25 years old and currently appraised at more than $3,000 were reappraised with a value of $3,000, the reduction in revenue would be roughly $670,000 per year. The revenue reduction would be borne primary by local governments.
    
    The State Tax Department would incur additional administrative costs of $30,000 for programming changes attributable to passage of this bill. Additionally, county assessors would incur additional administrative costs attributable to passage of this bill to compile and maintain information on qualifying antique vehicles.
    



Memorandum


    The stated purpose of this bill is to provide that the appraised value of an antique motor vehicle is $3000 for purposes of ad valorem property taxes.
    
    Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property is taxed in proportion to its value, and no one species of property which is taxed may be taxed higher than any other species of property of equal value.
    
    
    



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