FISCAL NOTE
Date Requested: January 16, 2023
Time Requested: 03:40 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2140 |
Amendment |
HB2584 |
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| CBD Subject: |
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FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Decreases Existing Revenue, 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 allow a Homestead Property Tax Exemption to veterans who are 100 percent disabled and have been determined by the United States Department of Veterans Affairs or its successor to have a 100 percent service connected disability.
Under the provisions of this bill, the $20,000 Homestead Exemption would be extended to a veteran with a 100 percent service disability. This exemption would result in a revenue loss of up to $1.2 million annually if all qualified disabled veterans used the exemption. However, some of these qualified veterans already have a Homestead Exemption for qualifying as totally and permanently disabled. Of the maximum $1.2 million loss, the estimated revenue loss would be roughly $330,000 to the State General Revenue Fund, $470,000 to local county school boards, $320,000 to county commissions and $80,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2022 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
Additional administrative costs to the State Tax Department and local governments cannot be determined.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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 |
-1,200,000 |
Explanation of above estimates (including long-range effect):
Under the provisions of this bill, the $20,000 Homestead Exemption would be extended to a veteran with a 100 percent service disability. This exemption would result in a revenue loss of up to $1.2 million annually if all qualified disabled veterans used the exemption. However, some of these qualified veterans already have a Homestead Exemption for qualifying as totally and permanently disabled. Of the maximum $1.2 million loss, the estimated revenue loss would be roughly $330,000 to the State General Revenue Fund, $470,000 to local county school boards, $320,000 to county commissions and $80,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2022 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
Additional administrative costs to the State Tax Department and local governments cannot be determined.
Memorandum
The stated purpose of this bill is to allow a Homestead Property Tax Exemption to veterans who are 100 percent disabled and have been determined by the United States Department of Veterans Affairs or its successor to have a 100 percent service connected disability.
Because this bill adds an additional category of persons subject to the definition of “Permanently and totally disabled” under §11-6B-2B, it contradicts W. VA. Const. Art X, §1b subsection C. Article X, §1b provides that persons who are over the age of 65 or permanently and totally disabled, as defined by the Legislature, are exempt from ad valorem property taxation. Article X, §1b only provides for the Legislature to define permanently and totally disabled but does not permit the inclusion of a new category of exempted persons, namely disabled veterans.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov