FISCAL NOTE

Date Requested: March 08, 2017
Time Requested: 01:12 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2928 Introduced HB2865
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 create a method by which aggrieved taxpayers, who believe that they were erroneously assessed or overpaid taxes based on an overestimation or unintentional mistake, may seek additional review by the State Auditor in order to reverse an adverse decision by a county commission. The bill clarifies that relief may be sought for overpayment of taxes by a taxpayer. The bill establishes a process to petition the Auditor for additional review of a county commission’s decision. The bill grants the Auditor express authority to order the county commission to make reimbursement or issue a tax credit where a county commission’s decision is found to be clearly erroneous. Finally, this bill grants the Auditor express authority to promulgate emergency rules in order to comply with this section.
    
    The State Tax Department cannot quantify the impact of this proposal. The number of taxpayers who might appeal successfully to the State Auditor’s Office cannot be determined. Administrative costs to local governments and the State Tax Department should be minimal. Most of the costs associated with this proposal would be incurred by the State Auditor’s Office.
    
    



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 0


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


    The State Tax Department cannot quantify the impact of this proposal. The number of taxpayers who might appeal successfully to the State Auditor’s Office cannot be determined. Administrative costs to local governments and the State Tax Department should be minimal. Most of the costs associated with this proposal would be incurred by the State Auditor’s Office.



Memorandum


    The stated purpose of this bill is to create a method by which aggrieved taxpayers, who believe that they were erroneously assessed or overpaid taxes based on an overestimation or unintentional mistake, may seek additional review by the State Auditor in order to reverse an adverse decision by a county commission. The bill clarifies that relief may be sought for overpayment of taxes by a taxpayer. The bill establishes a process to petition the Auditor for additional review of a county commission’s decision. The bill grants the Auditor express authority to order the county commission to make reimbursement or issue a tax credit where a county commission’s decision is found to be clearly erroneous. Finally, this bill grants the Auditor express authority to promulgate emergency rules in order to comply with this section.
    
    There may be a constitutional separation of powers issue raised by this bill, insofar as it grants certain judicial powers to the State Auditor, which is by definition an executive, not judicial, office. The current Code provides for an appeal of the county commission’s decisions to the circuit court. This bill would encroach on that judicial authority.
    



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