FISCAL NOTE
Date Requested: March 01, 2022
Time Requested: 02:59 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2609 |
Introduced |
HB4591 |
|
|---|
| CBD Subject: |
Counties |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
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 bill is to accelerate the change in the transfer tax so that it is payable only to the counties.
According to our interpretation of the bill, beginning July 1, 2022, the county portion of the State Property Transfer Tax would be increased from 10 percent to 55 percent. By July 1, 2023, these proposed changes would convert the State Property Transfer Tax to a County Property Transfer Tax. Passage of this bill would result in a reduction of $5.3 million to the General Revenue Fund in FY2023 and a reduction of $13.6 million to the General Revenue Fund in FY2024.
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
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 |
-5,300,000 |
-13,600,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of the bill, beginning July 1, 2022, the county portion of the State Property Transfer Tax would be increased from 10 percent to 55 percent. By July 1, 2023, these proposed changes would convert the State Property Transfer Tax to a County Property Transfer Tax. Passage of this bill would result in a reduction of $5.3 million to the General Revenue Fund in FY2023 and a reduction of $13.6 million to the General Revenue Fund in FY2024.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
The stated purpose of this bill is to accelerate the change in the transfer tax so that it is payable only to the counties.
There are references to “state tax” and “state excise tax” in subsections (a) and (b) that should probably be removed if the intent of this bill is to make the State Property Transfer Tax a county excise tax.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov