FISCAL NOTE
Date Requested: February 09, 2024
Time Requested: 03:02 PM |
| Agency: |
Division of Regulatory and Fiscal Affairs, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1336 |
Introduced |
HB5542 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 5542 would create a tax credit for both personal income tax and corporate net income tax for West Virginia tax filers who file and pay property taxes on aircraft. Filers would be able to claim this credit on an annual basis in the amount of property taxes paid on aircraft that is owned by that individual or corporation during that tax year. Refundable credits are allowed in the full amount of ad valorem property taxes paid by the owner of the aircraft. This does not include aircraft dealers, dealerships, retailer, or any business that sells new or used aircraft at retail value. For the 2023 Tax Year, if timely paid by the taxpayer, the state would have had an estimated reduction in general revenue by $329,685.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 |
-329,685 |
Explanation of above estimates (including long-range effect):
The Division of Regulatory and Fiscal Affairs (RAFA) estimated these figures using data provided by the West Virginia Department of Revenue. In Tax Year 2023, if paid timely, $329,685 in aircraft personal property taxes would be eligible for a refundable tax credit through either personal income tax or corporate income tax. This calculation is down slightly from Tax Year 2022, which has estimated taxes levied of $357,921.
RAFA was provided data from the West Virginia Department of Revenue that includes, for each of West Virginia’s 55 counties, information on approximately 75 categories of personal property. The information includes the total assessed value for that category, the total property tax owed, and a breakdown of that property tax by its state, county, school, and municipal portions as well as within those categories the regular levy and excess levy portions. The figures in this Fiscal Note represent the total property taxes paid on aircraft across all categories.
Memorandum
The bill does not possess an internal effective date.
Currently there are thirty-seven counties that collect personal property taxes on aircraft.
There is a possibility of aircraft currently registered in other states could relocate to West Virginia as a result of this credit, which would increase the potential cost of HB 5542.
Person submitting Fiscal Note: Peter Shirley
Email Address: peter.shirley@wvlegislature.gov