FISCAL NOTE
Date Requested: February 14, 2023
Time Requested: 03:44 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3606 |
Amendment |
|
HJR27 |
|---|
| CBD Subject: |
Natural Resources |
|---|
|
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 provide for an election to amend the State Constitution to exempt honorably discharged veterans of the Armed Forces of the United States who have been determined to have a 100 percent or more disability from ad valorem property taxation on the assessed value of his or her primary residence plus all personal property and then a tiered exemption based on a lesser percent of disability and to require that honorably discharged veterans will only be charged half the cost of a hunting or fishing license.
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data on the value of the real and personal property owned by honorably discharged veterans determined to a have a service-related disability.
Additional administrative costs 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 |
0 |
Explanation of above estimates (including long-range effect):
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data on the value of the real and personal property owned by honorably discharged veterans determined to a have a service-related disability.
Additional administrative costs cannot be determined.
Memorandum
The stated purpose of this bill is to provide for an election to amend the State Constitution to exempt honorably discharged veterans of the Armed Forces of the United States who have been determined to have a 100 percent or more disability from ad valorem property taxation on the assessed value of his or her primary residence plus all personal property and then a tiered exemption based on a lesser percent of disability and to require that honorably discharged veterans will only be charged half the cost of a hunting or fishing license.
The title states that a veteran with “a one hundred percent or lesser disability” will be exempt “from ad valorem property taxation on the full amount of assessed value of a primary residence and all personal property,” leaving the impression that a veteran with even a ten percent disability would still be exempt “on the full amount of assessed value.” The further resolution more correctly states that the full exemption is intended only for those with 100% disability while a “tiered reduction” would apply to those with lesser disability.
In addition, nothing in the proposed amendment limits the disability to a disability connected to the veteran’s miliary service. The limitation of the exemption applying only to those veterans “honorably discharged” may inadvertently disqualify veterans who receive a medical discharge.
The proposed amendment language incorrectly applies the exemption to persons (“. . . honorably discharged veterans of the Armed Forces of the United States who have been determined to have a one hundred percent disability are exempt . . .”) rather than property. A property tax exemption may exempt from taxation property held by a particular set of persons, but it is the property, and not the person, that is exempt.
Although both the title and the further resolution mention providing hunting and fishing licenses to veterans at half price, nothing in the text of the proposed constitutional amendment does so.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r. petry@wv.gov