FISCAL NOTE
Date Requested: January 20, 2026
Time Requested: 04:08 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1031 |
Introduced |
HB4597 |
|
|---|
| 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 incrementally increase the homestead exemption over a period of time.
Under the provisions of this bill, the value of the Homestead Exemption would be from $20,000 to $30,000 in 2028. The exemption would be further increased to $35,000 in 2029, $40,000 in 2030, and to 100 percent in 2032.
This increase in the Homestead Exemption from $20,000 to $30,000 in 2028 would result in a revenue loss of $23.5 million annually. The estimated revenue loss would be roughly $6.6 million to the State General Revenue Fund, $9.1 million to local county school boards, $6.3 million to county commissions and $1.5 million to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2025 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The Homestead Exemption would increase to $35,000 in 2029. This increase would result in a total revenue loss from current law of $34.4 million annually. The estimated revenue loss would be roughly $9.6 million to the State General Revenue Fund, $13.3 million to local county school boards, $9.2 million to county commissions and $2.3 million to municipalities.
The Homestead Exemption would further increase to $40,000 in 2030. This increase would result in a total revenue loss from current law of $44.0 million annually. The estimated revenue loss would be roughly $12.3 million to the State General Revenue Fund, $17.0 million to local county school boards, $11.8 million to county commissions and $2.9 million to municipalities.
The Homestead Exemption would increase to 100 percent of the Property Tax due in 2032. This increase would result in a total revenue loss from current law of $166.9 million annually. The estimated revenue loss would be roughly $46.8 million to the State General Revenue Fund, $64.5 million to local county school boards, $44.6 million to county commissions and $11.0 million to municipalities.
Additional one-time administrative costs for the State Tax Department would be $50,000. Other additional costs to the State or local governments would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
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 |
-166,900,000 |
Explanation of above estimates (including long-range effect):
Under the provisions of this bill, the value of the Homestead Exemption would be from $20,000 to $30,000 in 2028. The exemption would be further increased to $35,000 in 2029, $40,000 in 2030, and to 100 percent in 2032.
This increase in the Homestead Exemption from $20,000 to $30,000 in 2028 would result in a revenue loss of $23.5 million annually. The estimated revenue loss would be roughly $6.6 million to the State General Revenue Fund, $9.1 million to local county school boards, $6.3 million to county commissions and $1.5 million to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2025 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
The Homestead Exemption would increase to $35,000 in 2029. This increase would result in a total revenue loss from current law of $34.4 million annually. The estimated revenue loss would be roughly $9.6 million to the State General Revenue Fund, $13.3 million to local county school boards, $9.2 million to county commissions and $2.3 million to municipalities.
The Homestead Exemption would further increase to $40,000 in 2030. This increase would result in a total revenue loss from current law of $44.0 million annually. The estimated revenue loss would be roughly $12.3 million to the State General Revenue Fund, $17.0 million to local county school boards, $11.8 million to county commissions and $2.9 million to municipalities.
The Homestead Exemption would increase to 100 percent of the Property Tax due in 2032. This increase would result in a total revenue loss from current law of $166.9 million annually. The estimated revenue loss would be roughly $46.8 million to the State General Revenue Fund, $64.5 million to local county school boards, $44.6 million to county commissions and $11.0 million to municipalities.
In most counties, decreased tax revenue due to an increase in the Homestead Exemption would likely be at least partially offset by higher tax rates and tax burdens on other types of property, including both real property taxes and personal property taxes on vehicles, business inventory, machinery and equipment.
Additional one-time administrative costs for the State Tax Department would be $50,000. Other additional costs to the State or local governments would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov