FISCAL NOTE
Date Requested: February 11, 2021
Time Requested: 01:38 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1283 |
Introduced |
|
HJR10 |
|---|
| 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 citizen of 65 years of age or older, for the purpose of calculating property taxes, at the assessed value when the owner-occupier turned 65 or purchased the property, whichever occurred later.
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data available to predict the appraised value increase or decrease in each county. The proposal freezes the property appraisal but not the property tax bill as set by tax rates. Nearly 40 percent of the total property tax rates imposed in West Virginia are imposed by direct vote of the electorate. Voters may elect to approve higher tax rates to maintain local government services with some shifting of property tax liability to other taxpayers.
Additional administrative costs to the State Tax Department and local governments 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):
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data available to predict the appraised value increase or decrease in each county. The proposal freezes the property appraisal but not the property tax bill as set by tax rates. Nearly 40 percent of the total property tax rates imposed in West Virginia are imposed by direct vote of the electorate. Voters may elect to approve higher tax rates to maintain local government services with some shifting of property tax liability to other taxpayers.
Additional administrative costs to the State Tax Department and local governments would be minimal.
Memorandum
The stated purpose of this resolution is to propose a constitutional amendment that would lock the value of a homestead property owned by a citizen of 65 years of age or older, for the purpose of calculating property taxes, at the assessed value when the owner-occupier turned 65 or purchased the property, whichever occurred later.
The value of such property for property tax assessment purposes would be “locked” at the assessed value of the property at the time the owner turned 65 years old, or, if the property were purchased by a person who had already attained that age, the assessed value at the time occupancy began. An unintended consequence of the proposed amendment could be to hurt property owners in the event that property values should decrease in the future, thereby locking them in to a higher tax level.
There could be constitutional issues because the special valuation method would be denied to persons who are not citizens of the United States, even though they may be legal residents.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov