FISCAL NOTE
Date Requested: January 29, 2016 Time Requested: 03:33 PM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1817 |
Introduced |
HB4333 |
|
CBD Subject: |
Motor Vehicles, Taxation |
---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local 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 bill is to establish assessed values for certain motor vehicles.
As written, the bill would assign an assessed value of $5,000 to any vehicle that is registered as an antique vehicle and is not used for general transportation. The State Tax Department does not have sufficient information to determine which vehicles are registered as an antique vehicle; however, if all vehicles more than 25 years old and currently appraised at more than $5,000 were reappraised with a value of $5,000, the reduction in revenue would be roughly $120,000 per year. The revenue reduction would be borne primary by local governments. The tax impact of increasing the minimum appraised value of any vehicle to $700 is estimated to be a gain of $450,000. Statewide, the aggregate net revenue impact would be an increase of roughly $330,000, with some counties experiencing a net increase in revenue and some counties experiencing a net reduction in revenue.
The State Tax Department would incur additional administrative costs of $30,000 for programming changes attributable to passage of this bill. Additionally, county assessors would incur additional administrative costs attributable to passage of this bill to compile and maintain information on qualifying antique vehicles.
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 |
330,000 |
Explanation of above estimates (including long-range effect):
As written, the bill would assign an assessed value of $5,000 to any vehicle that is registered as an antique vehicle and is not used for general transportation. The State Tax Department does not have sufficient information to determine which vehicles are registered as an antique vehicle; however, if all vehicles more than 25 years old and currently appraised at more than $5,000 were reappraised with a value of $5,000, the reduction in revenue would be roughly $120,000 per year. The revenue reduction would be borne primary by local governments. The tax impact of increasing the minimum appraised value of any vehicle to $700 is estimated to be a gain of $450,000. Statewide, the aggregate net revenue impact would be an increase of roughly $330,000, with some counties experiencing a net increase in revenue and some counties experiencing a net reduction in revenue.
The State Tax Department would incur additional administrative costs of $30,000 for programming changes attributable to passage of this bill. Additionally, county assessors would incur additional administrative costs attributable to passage of this bill to compile and maintain information on qualifying antique vehicles.
Memorandum
The stated purpose of this bill is to establish assessed values for certain motor vehicles.
As written, the bill assigns an assessed value of $5,000 to any vehicle that is registered as an antique vehicle and is not used for general transportation.
Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property is taxed in proportion to its value, and no one species of property which is taxed may be taxed higher than any other species of property of equal value. The proposed bill also assigns the value of $5,000 for all antique vehicles as defined in W. Va. Code §17A-10-3a, that is, vehicles more than 25 years old and owned solely as a collector’s item. This provision also potentially violates the constitutional provisions of Article X, Section 1.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov