FISCAL NOTE

Date Requested: February 21, 2017
Time Requested: 11:35 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1803 Introduced HB2493
CBD Subject: Motor Vehicles, 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 grant a veteran with a hundred percent disability a $10,000 exemption from the assessed value for one vehicle that is not used for commercial purposes. Under the provisions of this bill, the first $10,000 of the assessed value of not more than one vehicle of a veteran with a hundred percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $500,000 annually. The estimated revenue loss would be roughly $150,000 to the State General Revenue Fund, $180,000 to local county school boards, $135,000 to county commissions and $35,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2016 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. There would be some administrative costs to the State Tax Department for programming changes and to local governments in determining qualifying veterans.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 0 500,000


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


Under the provisions of this bill, the first $10,000 of the assessed value of not more than one vehicle of a veteran with a hundred percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $500,000 annually. The estimated revenue loss would be roughly $150,000 to the State General Revenue Fund, $180,000 to local county school boards, $135,000 to county commissions and $35,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2016 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. There would be some administrative costs to the State Tax Department for programming changes and to local governments in determining qualifying veterans.



Memorandum


The stated purpose of this bill is grant a veteran with a hundred percent disability a $10,000 exemption from the assessed value for one vehicle that is not used for commercial purposes. Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property to be taxed in proportion to its value, and no one species of property be taxed higher than any other species of property of equal value. The proposed bill may be in violation of this section because some motor vehicles would be taxed at $10,000 less than its assessed value. The bill title fails to note the internal effective date of July 1, 2017.



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