FISCAL NOTE
Date Requested: January 18, 2016 Time Requested: 10:50 AM |
Agency: |
State Tax & Revenue Department |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1039 |
Introduced |
|
SJR2 |
CBD Subject: |
Constitutional Amendments |
---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund loca 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 |
2016 Increase/Decrease (use"-") |
2017 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