FISCAL NOTE
Date Requested: March 10, 2026
Time Requested: 11:36 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1266 |
Comm. Sub. |
SB144 |
|
|---|
| 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 purpose of this bill is to increase the Homestead Property Tax Exemption from $20,000 to $40,000.
Under the provisions of this bill, the value of the Homestead Exemption would be increased from $20,000 to $40,000. This increase in the Homestead Exemption would initially result in a revenue loss 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 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.
Effective January 1, 2027, counties may adjust the amount of the Homestead Exemption by submitting the question to the voters, subject to the limitations in this section. The amount of the Homestead Exemption may be raised or lowered if approved by a majority of the voters in the county, subject to the limitations in this section, including the $40,000 minimum:
In addition, the bill repeals §11-8-6e which provides that the levy shall be reduced when the general valuation of property would produce an assessment giving rise to an increase of 1 percent or more in projected tax revenues. The revenue impact of the repeal of this section cannot be determined. However, the removal of the cap would effectively result in higher property tax rates in affected jurisdictions than tax rates in place with the cap.
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 |
-44,000,000 |
Explanation of above estimates (including long-range effect):
Under the provisions of this bill, the value of the Homestead Exemption would be increased from $20,000 to $40,000. This increase in the Homestead Exemption would initially result in a revenue loss 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 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.
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.
Effective January 1, 2027, counties may adjust the amount of the Homestead Exemption by submitting the question to the voters, subject to the limitations in this section. The amount of the Homestead Exemption may be raised or lowered if approved by a majority of the voters in the county, subject to the limitations in this section, including the $40,000 minimum:
In addition, the bill repeals §11-8-6e which provides that the levy shall be reduced when the general valuation of property would produce an assessment giving rise to an increase of 1 percent or more in projected tax revenues. The revenue impact of the repeal of this section cannot be determined. However, the removal of the cap would effectively result in higher property tax rates in affected jurisdictions than tax rates in place with the cap.
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: Peter Shirley
Email Address: RADfiscal@wv.gov