FISCAL NOTE
Date Requested: January 19, 2026
Time Requested: 04:14 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2295 |
Introduced |
SB474 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Creates New 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 create the Truth in Taxation Act.
There would be no impact on State revenue due to the provisions of this bill. Future revenue impacts on counties, school boards and municipalities cannot be determined. However, this bill could lead to future losses of revenue to local governments from Property Taxes.
Additional costs to the State cannot be determined. Also, additional administrative costs to counties cannot be determined, but administrative costs will be higher due to calculating the revenue neutral rate. In addition, the bill has requirements for notifying the public and hosting public forums if the rates increase.
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 |
0 |
Explanation of above estimates (including long-range effect):
There would be no impact on State revenue due to the provisions of this bill. Future revenue impacts on counties, school boards and municipalities cannot be determined. However, this bill could lead to future losses of revenue to local governments from Property Taxes.
Current Law provides for automatic tax rate rollbacks whenever general property valuations of existing property would result in an increase of one percent or more in total projected property tax revenues that would be realized were the then current regular levy rates by the county commission and the municipalities to be imposed. A similar provision for automatic tax rate rollbacks exists for the statewide regular school levy rate if the projected yield would result in an increase of two percent or more. Governments may maintain regular tax rates that would result in revenues above the target only after first holding a public hearing on the proposed action. The provisions of this bill would effectively supplant current Law.
The regular school levy rates are set statewide as opposed to a county-by-county basis. In addition, nearly 40 percent of all property taxes imposed in West Virginia (i.e., excess levies and bond levies) are imposed by direct voter referendum. This proposal does not address how these tax rates, not specifically set by locally elected officials, would be addressed if yield exceeds base year revenues.
Although future impacts cannot be determined, when comparing tax years 2024 and 2025, revenue decreased so there would have been no impact. When further years were reviewed, revenue saw a year-over-year increase. These higher years would have been smoothed with the previous year leading to lower revenue than what would have been collected otherwise.
Additional costs to the State cannot be determined. Also, additional administrative costs to counties cannot be determined, but administrative costs will be higher due to calculating the revenue neutral rate. In addition, the bill has requirements for notifying the public and hosting public forums if the rates increase.
Memorandum
The stated purpose of this bill is to create the Truth in Taxation Act.
The bill has statutory deadlines for when notice must be given, hearings be held, and when a vote must be held by the taxing subdivision’s governing body. This may cause administrative issues depending on the taxing subdivisions’ ability to schedule and meet the requirements.
Subsection (d) of §11-29-2 states that “[t]he provisions of this subsection do not apply to school districts organized and operating under the laws of this state.” This effectively does nothing because that is the only provision of the subsection. Presumably it should say section instead of subsection.
There is no effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov