FISCAL NOTE

Date Requested: February 24, 2016
Time Requested: 10:46 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2820 Introduced SB679
CBD Subject: Taxation


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 bill is to establish a specific valuation of managed timberland and timberland that is not managed timberland for ad valorem property tax purposes. The bill provides remedies to persons aggrieved by the valuations and for compliance inspections and notice of revocation. The bill provides for appeals and an effective date.
    
    According to our interpretation, there would be an increase of roughly $1.5 million in revenue from Property Taxes on managed timberland beginning in FY2018.
    
    The State Tax Department would incur $25,000 in additional costs for remapping the parcels. Additional administrative costs to local governments would be minimal.
    



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 25,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 25,000 0
2. Estimated Total Revenues 0 0 1,500,000


Explanation of above estimates (including long-range effect):


    According to our interpretation, there would be an increase of roughly $1.5 million in revenue from Property Taxes on managed timberland beginning in FY2018.
    
    The State Tax Department would incur $25,000 in additional costs for remapping the parcels. Additional administrative costs to local governments would be minimal.
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov