FISCAL NOTE
Date Requested: February 18, 2020
Time Requested: 10:15 AM |
| Agency: |
Tax Appeals, Office of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2790 |
Introduced |
SB655 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
This measure will significantly increase the caseload at the West Virginia Office of Tax Appeals. Currently, Tax Department attorneys attend between 80-100 property tax hearings involving natural resources each year. A majority of those involve citizens airing complaints regarding the value of their individual natural resource holdings, versus a natural resource company disputing valuation, classification, or taxability. As a result, it is anticipated that many of these citizen complaints would not settle prior to hearing. It is also anticipated that a higher percentage of these cases would appeal an adverse ruling to the Circuit Courts. Each Circuit Court appeal requires the preparation of a certified record, which is a labor-intensive task. Due to this increased number of hearings and Circuit Court appeals, one additional support staff person would be required.
It is also highly likely that another administrative law judge would be required. Currently, two administrative law judges handle between 500-700 cases a year. Those cases come in a somewhat predictable pattern, over the course of twelve months. However, the letters informing Taxpayers of changes in their property tax rates all go out from the Board of Equalization and Review in January. Therefore, this Tribunal will likely see a 20% caseload increase in one month. The need for an additional judge will hinge on one fact, will these 80-100 Taxpayers request a hearing right away, or will they be amenable to a continuance.
Currently, the vast majority of cases before this Tribunal request a continuance, because the Taxpayers are hopeful they can get their tax bill settled, without the need for a hearing. This new category of cases are less likely to be continued in anticipation of settlement, because the nature of many of these cases is more akin to the airing of grievances, than an actual debate about the amount of taxes owed. If this Tribunal is confronted with 80-100 new cases in the space of a few weeks, all demanding an immediate hearing, an additional administrative law judge would be a necessity.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
FISCAL NOTE – S.B.655 February 19, 2020
FINANCIAL – Office of Tax Appeals
Administrative Law Judge II Class 9511 Pay Grade 24 $55,312-$62,500 Annum
Benefits $15,594 - $18,750 Annum
Secretary I Class 9015 Pay Grade 8 $22,794 - $25,000 Annum
Benefits $6,838 - $7,500 Annum
New Dell Power PC SWC 2 X $700 $1,400 One Time
New Dell Monitors SWC 2 X $300 $600 One time
New Desk top Printer SWC 2 X $200 $400 One Time
New Desk top Scanner SWC 1 X $350 $350 One Time
General Accessories N/A 2 X $150 $300 One Time
2-piece Desk Corrections 1 X $624 $624 One Time
File Cabinets Corrections 2 X $463 $926 One Time
Bookshelf Corrections 1 X $285 $285 One Time
Chairs Corrections 2 X $477 $954 One Time
Increased Postage Est 300 X .60 12 X $180 $2,160 Annum
PC/Network Support Off Tech 12 X $80 $960 Annum
Increased Off Supply Off Depot 12 X $100 $1,200 Annum
SALARY AND BENEFIT TOTALS $100,538 TO $113,750 Annum
INCREASED OPERATIONS COSTS $4,320 Annum
TECHNOLOGY-PC TOOLS ETC. $3,050 One Time
INCREASED FURNTIURE – ALL $2,789 One Time
Totals $110,697 --- $123,909
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: A.M. "Fenway" Pollack, Chief ALJ
Email Address: a.m.fenway.pollack@wv.gov