FISCAL NOTE
Date Requested: January 22, 2019
Time Requested: 02:25 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2647 |
Introduced |
|
HJR18 |
|---|
| CBD Subject: |
Constitutional Amendments |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this resolution is to propose a constitutional amendment that would lock the value of a homestead property owned by a senior citizen at no more than the assessed value when he or she turned 65 or purchased the property whichever is later and to exempt from property tax the principal residence of a veteran who was totally and permanently disabled in service to our country.
This resolution has two separate provisions. The first provision of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $3.0 million in the first year of effect and additional $3.0 million each year thereafter (i.e., $6.0 million in the second year and $9.0 million in the third year).The estimated first year revenue loss would be roughly $890,000 to the State General Revenue Fund, $1.1 million to local county school boards, $810,000 to county commissions and $210,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The second provision would exempt the real property or personal property in the form of a mobile home used exclusively for residential property of a veteran with a hundred percent service disability. This exemption would result in a revenue loss of roughly $2,000,000 annually. The estimated revenue loss would be roughly $590,000 to the State General Revenue Fund, $720,000 to local county school boards, $540,000 to county commissions and $140,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The additional administrative costs for State Tax Department and local governments would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
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 has two separate provisions. The first provision of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $3.0 million in the first year of effect and additional $3.0 million each year thereafter (i.e., $6.0 million in the second year and $9.0 million in the third year).The estimated first year revenue loss would be roughly $890,000 to the State General Revenue Fund, $1.1 million to local county school boards, $810,000 to county commissions and $210,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The second provision would exempt the real property or personal property in the form of a mobile home used exclusively for residential property of a veteran with a hundred percent service disability. This exemption would result in a revenue loss of roughly $2,000,000 annually. The estimated revenue loss would be roughly $590,000 to the State General Revenue Fund, $720,000 to local county school boards, $540,000 to county commissions and $140,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The additional administrative costs for State Tax Department and local governments would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov