FISCAL NOTE
Date Requested: February 20, 2026
Time Requested: 08:22 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3608 |
Introduced |
SB898 |
|
|---|
| 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 assess certain agricultural buildings on qualified farmland at salvage value beginning January 1, 2027, and, beginning January 1, 2029, remove such buildings from ad valorem real property tax assessment altogether.
According to our interpretation, the revenue loss associated with this bill could be roughly $2.5 million a year. The estimated revenue loss would be roughly $750,000 to the State General Revenue Fund, $1.03 million to local county school boards, and $720,000 to county commissions. 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.
Additional administrative costs 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 |
-2,500,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the revenue loss associated with this bill could be roughly $2.5 million a year. The estimated revenue loss would be roughly $750,000 to the State General Revenue Fund, $1.03 million to local county school boards, and $720,000 to county commissions. 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.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to assess certain agricultural buildings on qualified farmland at salvage value beginning January 1, 2027, and, beginning January 1, 2029, remove such buildings from ad valorem real property tax assessment altogether.
The bill provides that buildings on “qualified farmland” which are used solely for the purposes of agriculture shall be assessed at “salvage value” beginning January 1, 2027. Furthermore, beginning on January 1, 2029, building on “qualified farmland” used solely for the purposes of agriculture shall not be included or assessed in any determination of ad valorem property tax.
The term “qualified farmland” is undefined, causing ambiguity. Presumably, “qualified farmland” would be synonymous with property that qualifies for farm use valuation. The term “salvage value” is also undefined, causing ambiguity regarding how to determine the value of buildings on qualified farmland under this bill. Generally, “salvage value” is defined at 5 percent of the cost of property in the W. Va. Code, but these definitions are not applied across article 4 of chapter 11.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov