FISCAL NOTE
Date Requested: February 09, 2015 Time Requested: 10:49 AM |
Agency: |
Auditor, State of WV |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1134 |
Introduced |
HB2087 |
|
CBD Subject: |
Real and Personal Prop. |
---|
|
FUND(S):
Sources of Revenue:
Special Fund,Other Fund School Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation is intended to permit surface owners to purchase the mineral interests which lay below the property when those mineral interests become subject to a tax lien. The legislation also established procedures, requires notice; and, establishes purchase prices. Also, the proposed legislation would establish certain nonrefundable $20 administrative fees; modifies notices to redeem which are sent to property owners; provides a procedure in the event more than one surface owner seeks to purchase the delinquent mineral interests; and, provides remedies related to tax sales. According to our records, if this legislation would have been in effect in the prior year, it would have created additional cost to the State Auditor’s Office approximating $10,000 per year. However, we believe there would be consequential additional costs for would-be purchasers, primarily related to additional notice expenses and legal expenses for more involved title searches which we have estimated would result in potential additional costs to purchasers of approximately $1,570,000 per year. Lastly, we are concerned that these potential additional costs to would-be purchasers could negatively impact delinquent land sales and lengthen the amount of time required to bring lands back onto the tax rolls. If any such result were realized, it would have negative impacts on the various County budgets, including those of the County School Boards.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
10,000 |
10,000 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
10,000 |
10,000 |
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):
Memorandum
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov