FISCAL NOTE
Date Requested: February 20, 2016
Time Requested: 01:41 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2847 |
Introduced |
|
SJR12 |
|---|
| CBD Subject: |
Constitutional Amendments |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local property tax
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this resolution is to immediately freeze the value of a home preceding a homeowner turning sixty five years of age.
The provisions of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $4.0 million in the first year of effect and additional $4.0 million each year. The estimated first year revenue loss would be roughly $1.2 million to the State General Revenue Fund, $1.5 million to local county school boards, $1.1 million to county commissions and $270,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the FY2016 Classified Assessed Valuations Taxes Levied publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The additional administrative costs for State Tax Department are estimated to be $20,000 for programming costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
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 provisions of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $4.0 million in the first year of effect and additional $4.0 million each year. The estimated first year revenue loss would be roughly $1.2 million to the State General Revenue Fund, $1.5 million to local county school boards, $1.1 million to county commissions and $270,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the FY2016 Classified Assessed Valuations Taxes Levied publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The additional administrative costs for State Tax Department are estimated to be $20,000 for programming costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov