FISCAL NOTE
Date Requested: March 17, 2025
Time Requested: 04:12 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3448 |
Comm. Sub. |
SB618 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
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 purpose of this bill relates to allowing for a reduction in property tax for certain farmland in this state.
The provisions of this bill would provide farm valuation treatment to a farm property owned by a corporation that is not engaged in the business of farming as its principal activity, but which owns farm property that is annually utilized to produce for sale, consumption, or use at least $20,000 of agricultural products. All parcels of farm property owned by the corporation, regardless of whether contiguous or not, shall be considered together in determining whether the corporation's farm property produces at least $20,000 of agricultural products. The revenue loss associated with this bill cannot be determined. We do not have data to track sales or consumables related to agricultural products on the farm property owned by a corporation or an individual to determine which property would receive farm valuation treatment.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 provisions of this bill would provide farm valuation treatment to a farm property owned by a corporation that is not engaged in the business of farming as its principal activity, but which owns farm property that is annually utilized to produce for sale, consumption, or use at least $20,000 of agricultural products. All parcels of farm property owned by the corporation, regardless of whether contiguous or not, shall be considered together in determining whether the corporation's farm property produces at least $20,000 of agricultural products. The revenue loss associated with this bill cannot be determined. We do not have data to track sales or consumables related to agricultural products on the farm property owned by a corporation or an individual to determine which property would receive farm valuation treatment.
Additional administrative costs would be minimal.
Memorandum
The purpose of this bill relates to allowing for a reduction in property tax for certain farmland in this state.
This amendment would allow corporations that are “not engaged in the business of farming as its principal activity,” but own “farm property” that produces, consumes, or uses at least $20,000 in “agricultural products” to have any such farm property owned by the qualifying corporation be appraised as farm property. All parcels owned by the same taxpayer are considered together, regardless of whether they are contiguous.
The statute does not specify how to measure the $20,000 minimum.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov