Sources of Revenue:

Other Fund N/A

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

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

    The purpose of this bill is to remove provisions for using assumed assessed values for the purpose of computation. The bill removes provisions for increasing counties' local share responsibility for funding under the basic foundation education formula. The bill revises a definition. The bill makes legislative findings on the effect that under assessed property values have on school funding. The bill sets forth that it is the duty of county assessors to accurately assess property taxes. The bill establishes the duty of the Tax Commissioner to ensure a thorough and efficient educations of the state's children is not diminished by the under assessment of property taxes.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 -5,497,168
Personal Services 0 0 0
Current Expenses 0 0 -5,497,168
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):

    It is estimated that the bill would provide an annual average cost savings to the State of $5,497,168.
    The WVDE calculated this estimated savings by netting the annual increase in the local share amounts for four years (the preliminary local share based on the December estimate from the State Tax Department versus the final local share based on the Certificates of Valuation from the county assessors) against what the penalties to the county boards would have been for the county boards where the assessed valuations would have been determined to be understated during the same four years, based on the applicable sales ratio study reports.
    The four year average net increase in local share calculates was, $7,853,097, but since 30% of the increase in local share is designated by Code to be used to increase Step 7 allowances under the Public School Support Program, the estimated cost savings to the State would be 70% of this total, or $5,497,168.
    The four years used on computing the average were fiscal years 2010, 2011, 2012, and 2014; fiscal year 2013 was used because assessed valuations declined for that year, which was considered to not be representative of the normal trend in property valuations.



    Person submitting Fiscal Note: Brenda Freed
    Email Address: