FISCAL NOTE

Date Requested: January 10, 2019
Time Requested: 04:53 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1042 Introduced SB53
CBD Subject: Real and Personal Property, Taxation


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local property tax

Legislation creates:

Increases Revenue From Existing Sources, Increases Existing Expenses



Fiscal Note Summary


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


    The stated purpose of this bill is to repeal a section of the code related to wind power projects.
    
    According to our interpretation, passage of this bill would effectively eliminate any salvage valuation pollution control treatment for wind power plants. As a result, taxable property valuations for such facilities would increase along with property tax assessments. There would be an increase of roughly $8.5 million in revenue beginning in FY2021. The estimated revenue gain would be more than $3.8 million to the State General Revenue Fund, $1.6 million to local county school boards, and $3.1 million to county commissions. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 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.
    
    Additional administrative costs would be minimal.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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 8,500,000


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


    There would be an increase of roughly $8.5 million in revenue beginning in FY2021. The estimated revenue gain would be more than $3.8 million to the State General Revenue Fund, $1.6 million to local county school boards, and $3.1 million to county commissions. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2018 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.
    
    Additional administrative costs would be minimal.
    
    
    



Memorandum


    



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