FISCAL NOTE
Date Requested: February 22, 2021
Time Requested: 10:45 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2316 |
Introduced |
HB2496 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to change appellate rights of property owners concerning valuation, classification, and taxability of real estate and personal property taxation; provide that residential property owners may not be required to furnish a formal appraisal to establish the value of their primary residence; provide that an assessor’s review is to be an informal process and define the standard of proof which a taxpayer must meet to be no greater than a preponderance of the evidence; expand the jurisdiction of the Office of Tax Appeals to include property tax valuation, classification, and taxability; provide that if an assessor rejects a petition, the petitioner may appeal to the county Board of Equalization and Review or the Office of Tax Appeals; allow for certain appeals from decisions of the Tax Commissioner and Board of Equalization and Review to the Office of Tax Appeals; repeal and eliminate the Board of Assessment Appeals; provide for an increase in the number of administrative law judges and staff attorneys within the Office of Tax Appeals; provide an effective date; and make technical changes.
These are procedural changes which should not affect State or county revenue. However, the procedural changes shift certain property tax administration responsibilities from local governments to the State with additional costs for State government relating to local tax administration. The additional costs are not incorporated in the fiscal note but should be addressed separately by the Office of Tax Appeals.
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):
These are procedural changes which should not affect State or county revenue. However, the procedural changes shift certain property tax administration responsibilities from local governments to the State with additional costs for State government relating to local tax administration. The additional costs are not incorporated in the fiscal note but should be addressed separately by the Office of Tax Appeals.
Memorandum
The stated purpose of this bill is to change appellate rights of property owners concerning valuation, classification, and taxability of real estate and personal property taxation; provide that residential property owners may not be required to furnish a formal appraisal to establish the value of their primary residence; provide that an assessor’s review is to be an informal process and define the standard of proof which a taxpayer must meet to be no greater than a preponderance of the evidence; expand the jurisdiction of the Office of Tax Appeals to include property tax valuation, classification, and taxability; provide that if an assessor rejects a petition, the petitioner may appeal to the county Board of Equalization and Review or the Office of Tax Appeals; allow for certain appeals from decisions of the Tax Commissioner and Board of Equalization and Review to the Office of Tax Appeals; repeal and eliminate the Board of Assessment Appeals; provide for an increase in the number of administrative law judges and staff attorneys within the Office of Tax Appeals; provide an effective date; and make technical changes.
There are some concerns because the bill sets the standard of proof as “no greater than a simple preponderance of the evidence”. The current standard requires “clear and convincing evidence”. In addition, the bill title does not mention that the bill lowers the burden of proof for the hearings.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov