FISCAL NOTE

Date Requested: January 11, 2019
Time Requested: 03:03 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1363 Introduced HJR11
CBD Subject: Taxation


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local property tax

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


The stated purpose of this resolution is to propose a constitutional amendment that would lock the value of a homestead property owned by a citizen of 65 years of age or older, for the purpose of calculating property taxes, at the assessed value when the owner-occupier turned 65 or purchased the property, whichever is later. The provisions of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $3.0 million in the first year of effect and additional $3.0 million each year thereafter (i.e., $6.0 million in the second year and $9.0 million in the third year).The estimated first year revenue loss would be roughly $890,000 to the State General Revenue Fund, $1.1 million to local county school boards, $810,000 to county commissions and $210,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 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. The additional administrative costs for State Tax Department and local governments 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 0


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


The provisions of this resolution would freeze the value of a home to the value immediately preceding the oldest homeowner turning sixty-five. This would result in a revenue loss of roughly $3.0 million in the first year of effect and additional $3.0 million each year thereafter (i.e., $6.0 million in the second year and $9.0 million in the third year).The estimated first year revenue loss would be roughly $890,000 to the State General Revenue Fund, $1.1 million to local county school boards, $810,000 to county commissions and $210,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 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. The additional administrative costs for State Tax Department and local governments would be minimal.



Memorandum






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