FISCAL NOTE
Date Requested: March 30, 2021
Time Requested: 11:05 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2277 |
Comm. Sub. |
SB383 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to exempt property, used exclusively for divine worship and the operation of a pre-K school, primary school, middle school, secondary school, or daycare center for children, which school or daycare center is operated by the church which owns the property or is operated by another not-for-profit organization or entity, from taxation. In addition, an exemption from taxation for motor vehicles subject to a lease for at least one year by the United States, the state, any county, district, city, village, town, political subdivision, or any state college or university, and used for a public purpose was included.
This bill expands one exemption and add a new exemption to the list of properties exempt from Property Tax. The first change is just a clarification of current Code relating to property used for divine worship and would have no revenue impact. The second change adds an exemption for motor vehicles leased for one year to government entities. This new exemption would result in a minimal loss of revenue.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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 bill expands one exemption and add a new exemption to the list of properties exempt from Property Tax. The first change is just a clarification of current Code relating to property used for divine worship and would have no revenue impact. The second change adds an exemption for motor vehicles leased for one year to government entities. This new exemption would result in a minimal loss of revenue.
Additional administrative costs would be minimal.
Memorandum
The purpose of this bill is to exempt property, used exclusively for divine worship and the operation of a pre-K school, primary school, middle school, secondary school, or daycare center for children, which school or daycare center is operated by the church which owns the property or is operated by another not-for-profit organization or entity, from taxation. In addition, an exemption from taxation for motor vehicles subject to a lease for at least one year by the United States, the state, any county, district, city, village, town, political subdivision, or any state college or university, and used for a public purpose was included.
Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State The proposals in this bill may give rise to constitutional challenges pursuant to Article X, Section 1 of the W. Va. Constitution as taxation must be “equal and uniform thought the state.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov