FISCAL NOTE
Date Requested: January 12, 2024
Time Requested: 05:58 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1708 |
Introduced |
SB397 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to fully exempt both high tunnels and greenhouses from personal property taxes, whether the high tunnels or greenhouses are heated or unheated.
The revenue loss associated with this bill cannot be determined but would not be substantial.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 revenue loss associated with this bill cannot be determined but would not be substantial.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to fully exempt both high tunnels and greenhouses from personal property taxes, whether the high tunnels or greenhouses are heated or unheated.
A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt this type of property from ad valorem taxation. The State Constitution allows for property to be exempted according to its use. However, this bill would exempt a particular kind of property from taxation, regardless of its use. Although W. Va. Code §11-13-9(a)(28), provides an exemption which apply to high tunnels and greenhouses as “personal property used exclusively in agriculture”, the proposed bill contains no such limitation.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov