FISCAL NOTE
Date Requested: February 23, 2026
Time Requested: 12:24 PM |
| Agency: |
Real Estate Division, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4100 |
Introduced |
HB5612 |
|
|---|
| CBD Subject: |
Finance and Administration; Real and Personal Property |
|---|
|
FUND(S):
General Revenue
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This legislation would eliminate a current statutory requirement that the Real Estate Division submit the market value of all real property owned or leased by each state spending unit.
In the past, budget constraints prohibited the Real Estate Division from obtaining these valuations. However, if RED were to meet the requirement, the cost to obtain valuations would be at least $27,500,000 ($13,750,000 in FY 2026 and another $13,750,000 in FY 2027). Credible estimates for appraisals range from $2,500 to $9,500 per parcel. State agencies report approximately 3,000 parcels (the actual number is likely significantly higher). Additionally, code requires appraisals for leased property, increasing the number of appraisable parcels to approximately 11,000. This estimate applies a rate from the low end of the cost range, spread across 11,000 parcels. This expense would recur every four years. This estimate does not account for unreported or improperly reported parcels. The work and expense of the current code is beyond the agency’s current budget constraints.
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):
Actual expenses would not decrease because the Real Estate Division will no longer be required to obtain market appraisals for all state owned and leased property. However, if the legislation is not enacted and the obligation remains.
Memorandum
The bill eliminates the requirement for RED to obtain market value appraisals for all state owned and leased property. Appraisals are unnecessary and of little value unless the state is selling the specific property within the few months that an appraisal is valid. The work and expense of the current code is beyond the agency’s current budget constraints. The state is still permitted to obtain appraisals on any property that it owns as part of a sale.
Person submitting Fiscal Note: Arlie Hubbard
Email Address: arlie.o.hubbard@wv.gov