FISCAL NOTE
Date Requested: March 16, 2021
Time Requested: 11:37 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2133 |
Introduced |
HB3179 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources, 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 limit property tax increases for individuals who are over 65, permanently disabled, or widowed and earn less than $20,000 per year.
According to our interpretation, the provisions of this bill would attempt to freeze both the assessed values and any applicable tax rates for either those eligible for the Homestead Exemption, or anyone widowed and earning less than $20,000 a year, at the levels in place when such taxpayer first became eligible for the Homestead Exemption or low-income widow status. The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data to determine how much the property values of the eligible property would increase over time or how tax rates might change. Currently, taxpayers who are receiving the $20,000 Homestead Exemption account for more than 20 percent of all owner-occupied homes in the State.
Additional administrative costs 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):
According to our interpretation, the provisions of this bill would attempt to freeze both the assessed values and any applicable tax rates for either those eligible for the Homestead Exemption, or anyone widowed and earning less than $20,000 a year, at the levels in place when such taxpayer first became eligible for the Homestead Exemption or low-income widow status. The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data to determine how much the property values of the eligible property would increase over time or how tax rates might change. Currently, taxpayers who are receiving the $20,000 Homestead Exemption account for more than 20 percent of all owner-occupied homes in the State.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to limit property tax increases for individuals who are over 65, permanently disabled, or widowed and earn less than $20,000 per year.
Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property to be taxed in proportion to its value, and no one species of property be taxed higher than any other species of property of equal value. The proposed bill may be in violation of this section because some real property of some homeowners would be valued lower than that of other homeowners.
Beyond freezing the assessed valued of the property, the bill also freezes the tax rate for eligible persons. If or when the tax rate is changed, there would be nonuniform taxation.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov