FISCAL NOTE

Date Requested: January 14, 2020
Time Requested: 11:42 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2066 Introduced HB4190
CBD Subject: Taxation


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local governments

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 to amend definitions relating to excise tax. The proposed bill would amend the definition of “document” for purposes of determining what transfers are subject to the excise tax on the transfer of real property. All references to quitclaim deeds and gifts would be eliminated from the definition. According to our interpretation, the proposed bill would enhance the revenue from Property Transfer Tax by expressly including documents relating to the transfer of mineral interest or right to extract any mineral interest. Some of these transfers may not have a value and may require the hiring of a third party to determine the value. The State Tax Department cannot estimate the revenue gain associated with this proposal. There will be no additional administrative costs to the State Tax Department associated with this bill.



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):


The proposed bill would amend the definition of “document” for purposes of determining what transfers are subject to the excise tax on the transfer of real property. All references to quitclaim deeds and gifts would be eliminated from the definition. According to our interpretation, the proposed bill would enhance the revenue from Property Transfer Tax by expressly including documents relating to the transfer of mineral interest or right to extract any mineral interest. Some of these transfers may not have a value and may require the hiring of a third party to determine the value. The State Tax Department cannot estimate the revenue gain associated with this proposal. There will be no additional administrative costs to the State Tax Department associated with this bill.



Memorandum






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