FISCAL NOTE

Date Requested: February 23, 2017
Time Requested: 12:07 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1025 Introduced SB369
CBD Subject: Real and Personal Property


FUND(S):

1206 Land Operating Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This Bill shifts the burden of notifications from the surface owner to the Purchaser of the Mineral Interest (In Delinquency). The result is a possible loss in sales and the subsequent loss of revenue to the school system.



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 0 170,000 0
Personal Services 0 100,000 0
Current Expenses 0 20,000 0
Repairs and Alterations 0 0 0
Assets 0 50,000 0
Other 0 0 0
2. Estimated Total Revenues 0 30,000 0


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


    We estimate the change will require the WVSAO to hire two additional employees, relevant Employee Benefits ($100,000.00), require the office to change the current database programs and resulting Imaging software ($20,000.00) and to add an additional software tracking and reporting program for this property set.
    
    Under this proposal the buyer must serve notice on the surface owner, this cost is estimated to be an additional $1,000.00 per piece. The overall cost to the buyer for all annual sales will be an estimated $2,400,000.00 to the redeemer for additional title work, notices and deed fees.
    
    Based on the number of sales in 2013 Tax Year.



Memorandum


    Based on the bill the Person(s) trying to redeem the property for the mineral interest would be responsible for the additional estimated $1,000.00.
    
    11a-3-2 states The surface owner already has the right to know the owner of the mineral interest by notifying the sheriff's office that they wish to be informed when the mineral interests go delinquent.
    
    11a-3-21 The Deed Date is April 1, this bill extends the period beyond this deadline erroneously.
    
    The language used in the bill for the notification is insufficient to allow persons receiving the notice to know what property is referenced in relation to their legal interest.
    
    The Total Dollar amount referenced in the notification may not be clear as to whether it pertains to surface or mineral ownership or both.



    Person submitting Fiscal Note: Charles Perdue/Russ Rollyson/Danny Thompson
    Email Address: charles.perdue@wvsao.gov