FISCAL NOTE
Date Requested: March 12, 2021
Time Requested: 11:20 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2445 |
Introduced |
HB3088 |
|
|---|
| 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 permit counties to assess wind turbines in wind power projects at values ranging from salvage value to true and actual value.
The revenue impact of this proposal on Property Tax collections cannot be determined. Industrial taxpayers do not separate the towers from the wind turbines when reporting the value to the State on their industrial returns.
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):
The revenue impact of this proposal on Property Tax collections cannot be determined. Industrial taxpayers do not separate the towers from the wind turbines when reporting the value to the State on their industrial returns.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to permit counties to assess wind turbines in wind power projects at values ranging from salvage value to true and actual value.
Under current law, a wind turbine and the tower it is mounted on are all “considered to be personal property that is a pollution control facility” and so valued for property tax purposes at their salvage value. The bill separates the turbine part from the tower and tower foundation, allowing the tower and tower foundation to retain status as a pollution control facility; but allowing assessors to value wind turbines installed at wind power projects between salvage value and actual value effective July 1, 2021. Allowing county assessors to value the same sort of property at anything from salvage value to actual value creates a potential constitutional violation, in that the same type of property in different counties could be valued very differently depending on how the respective county assessors chose to value it. This would be a violation of W. Va. Constitution Article X, Section 1, which requires that property taxation be “equal and uniform throughout the State.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov