FISCAL NOTE
Date Requested: January 20, 2019
Time Requested: 11:04 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2184 |
Introduced |
SB333 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 to exempt from personal property taxation private passenger automobiles that are 25 years old or older.
As written, the bill provides that private passenger automobiles that are 25 years old or older are exempt from Property Tax. This revenue impact of this proposed exemption would be a minimal decrease in State revenue and a loss of $1.5 million in local revenue for counties, county boards of education and municipalities.
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 |
-1,500,000 |
Explanation of above estimates (including long-range effect):
As written, the bill provides that private passenger automobiles that are 25 years old or older are exempt from Property Tax. This revenue impact of this proposed exemption would be a minimal decrease in State revenue and a loss of $1.5 million in local revenue for counties, county boards of education and municipalities. The average statewide assessed value of a car over 25 years old is slightly over $900.
Additional administrative costs to the State Tax Department and local governments would be minimal.
Memorandum
The stated purpose of this bill is to exempt from personal property taxation private passenger automobiles that are 25 years old or older.
Article X, Section 1 of the W. Va. Constitution requires that all property, real and personal, be taxed in proportion to its fair market value. According to the Constitution, the Legislature may exempt property that is used for certain purposes; however, this bill would exempt a certain kind of personal property, without regard to how it is used.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov