FISCAL NOTE
Date Requested: March 19, 2021 Time Requested: 09:55 AM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3323 |
Introduced |
HB3137 |
|
CBD Subject: |
Municipalities |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
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 accelerate the conversion of the transfer tax on the privilege of transferring real property from a state excise tax to a county excise tax.
According to our interpretation of this bill, beginning July 1, 2022 the county portion of the State Property Transfer Tax would be increased from 10 percent to 30 percent. By July 1, 2025, these proposed changes would convert the State Property Transfer Tax to a County Property Transfer Tax. Passage of this bill would result in a reduction of $3.1 million to the General Revenue Fund in FY2023, a reduction of $6.1 million to the General Revenue Fund in FY2024, and a reduction of $9.2 million to the General Revenue Fund in FY2025 and subsequent fiscal years.
There would be no additional administrative costs incurred by the State Tax Department.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2021 Increase/Decrease (use"-") |
2022 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 |
-9,200,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, beginning July 1, 2022 the county portion of the State Property Transfer Tax would be increased from 10 percent to 30 percent. By July 1, 2025, these proposed changes would convert the State Property Transfer Tax to a County Property Transfer Tax. Passage of this bill would result in a reduction of $3.1 million to the General Revenue Fund in FY2023, a reduction of $6.1 million to the General Revenue Fund in FY2024, and a reduction of $9.2 million to the General Revenue Fund in FY2025 and subsequent fiscal years.
There would be no additional administrative costs incurred by the State Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov