FISCAL NOTE

Date Requested: January 10, 2020
Time Requested: 03:51 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1102 Introduced SB92
CBD Subject: Military and Veterans


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 100 percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $2.0 million annually. The estimated revenue loss would be roughly $550,000 to the State General Revenue Fund, $770,000 to local county school boards, $540,000 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 2019 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
2020
Increase/Decrease
(use"-")
2021
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):


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 100 percent service disability would be exempt from Property Tax. This exemption would result in a revenue loss of roughly $2.0 million annually. The estimated revenue loss would be roughly $550,000 to the State General Revenue Fund, $770,000 to local county school boards, $540,000 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 2019 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. The amount of the proposed exemption may violate the General Homestead Exemption authorized by Article X, Section 1b, Subsection C of the W. Va. Constitution, which limits the amount of the exemption to $20,000. In addition, the proposed amendment would strike language from the existing Code that exempts military retirees from the two-year residence requirement for the General Homestead Exemption.



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