FISCAL NOTE
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund Local property tax
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to exempt one motor vehicle owned by a volunteer firefighter from personal property taxation.
Passage of this bill would result in a minimal reduction in State revenue and a decline of $860,000 in revenue to local government.
The Tax Department will incur a one-time programming cost of $20,000. County assessors would incur an unknown amount of additional administrative costs as a result of passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
20,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
20,000 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-860,000 |
-860,000 |
Explanation of above estimates (including long-range effect):
The loss of revenue is based on the average vehicle assessment multiplied by the number of volunteer firefighters obtained from the Fire Marshall’s office. There would be a minimal decline in State revenue and a loss of $860,000 in local government revenue.
The Tax Department would incur one-time programming costs of $20,000. Additional administrative costs to local governments for record keeping, etc., cannot be determined.
Memorandum
The bill amends the statute relating to the registration of motor vehicles in the State as opposed to West Virginia Code §11-3-9, the section where most property tax exemptions are listed. This could create confusion administering the exemption.
The bill authorizes the exemption “upon presentation of sufficient proof by an individual that he or she is a volunteer firefighter in this state”. The bill does not state what qualifies as “sufficient proof” or to whom the sufficient proof is to be presented. There is also no requirement that a person remain a volunteer firefighter in order to retain the exemption.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us