FISCAL NOTE
Date Requested: March 19, 2025
Time Requested: 12:32 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2617 |
Introduced |
SB807 |
|
|---|
| 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 exempt from personal property taxation private passenger automobiles that are 25 years old or older.
As written, the bill exempts private passenger automobiles that are 25 years old or older from Property Tax. This exemption would result in a revenue loss of $3.0 million annually. The estimated revenue loss would be roughly $860,000 to the State General Revenue Fund, $1.18 million to local county school boards, $790,000 to county commissions and $170,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2024 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 losses for local governments would occur in those counties in which the vehicles exempted are located.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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):
As written, the bill exempts private passenger automobiles that are 25 years old or older from Property Tax. This exemption would result in a revenue loss of $3.0 million annually. The estimated revenue loss would be roughly $860,000 to the State General Revenue Fund, $1.18 million to local county school boards, $790,000 to county commissions and $170,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2024 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 losses for local governments would occur in those counties in which the vehicles exempted are located.
Additional administrative costs would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov