FISCAL NOTE

Date Requested: January 14, 2019
Time Requested: 03:06 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1757 Introduced HB2388
CBD Subject: Military and Veterans, Taxation


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local property tax revenue

Legislation creates:

Decreases Existing Revenue, 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 permit active members of the United States military and veterans who have been honorably discharged from service to elect one item, either real or personal to be exempt from the payment of various taxes. The State Tax Department cannot quantify the revenue loss associated with this proposal. It is impossible to know how many taxpayers would select an item of real property or personal property or what the assessed value of the chosen item would be. Additional administrative costs to the State Tax Department would be minimal. Local governments would incur additional costs in determining eligibility, but we cannot estimate the amount of these costs.



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 State Tax Department cannot quantify the revenue loss associated with this proposal. It is impossible to know how many taxpayers would select an item of real property or personal property or what the assessed value of the chosen item would be. Additional administrative costs to the State Tax Department would be minimal. Local governments would incur additional costs in determining eligibility, but we cannot estimate the amount of these costs.



Memorandum


The stated purpose of this bill is to permit active members of the United States military and veterans who have been honorably discharged from service to elect one item, either real or personal to be exempt from the payment of various taxes. A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt this type of property from ad valorem taxation. Other than specified exemptions provided for in the Constitution or in adopted amendments to the Constitution (e.g., Class I intangibles, freeport inventories, farm personal property), only property used for certain activities (i.e., educational, literary, scientific, religious or charitable purposes) may be exempted. Although the proposed exemption is in the section of the W. Va. Code dealing with Property Tax exemptions, the stated purpose states that active members of the military and veterans may exempt one item, either real or personal, from payment of various taxes.



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