FISCAL NOTE
Date Requested: January 21, 2019
Time Requested: 01:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2329 |
Introduced |
SB363 |
|
|---|
| CBD Subject: |
|
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FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
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 bill is exempt the first $150,000 of the assessed value of a person’s primary residence in this state if the person is a veteran and is permanently and totally physically or mentally disabled.
Under the provisions of this bill, the first $150,000 of the assessed value of the primary residence in West Virginia of a veteran with a hundred percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $1.95 million annually. The estimated revenue loss would be roughly $580,000 to the State General Revenue Fund, $700,000 to local county school boards, $530,000 to county commissions and $140,000 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.
Additional administrative costs to the 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 |
-1,950,000 |
Explanation of above estimates (including long-range effect):
Under the provisions of this bill, the first $150,000 of the assessed value of the primary residence in West Virginia of a veteran with a hundred percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $1.95 million annually. The estimated revenue loss would be roughly $580,000 to the State General Revenue Fund, $700,000 to local county school boards, $530,000 to county commissions and $140,000 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.
Additional administrative costs to the State Tax Department and local governments would be minimal.
Memorandum
The stated purpose of this bill is exempt the first $150,000 of the assessed value of a person’s primary residence in this state if the person is a veteran and is permanently and totally physically or mentally disabled.
Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property to be taxed in proportion to its value, and no one species of property be taxed higher than any other species of property of equal value. The proposed bill may be in violation of this section because some motor vehicles would be taxed at $10,000 less than its assessed value.
There is no internal effective date. The bill would be effective 90 days after passage. This would mean that persons could qualify before the assessment on July 1, 2019.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov