FISCAL NOTE
Date Requested: February 10, 2021
Time Requested: 04:41 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1243 |
Introduced |
HB2209 |
|
|---|
| CBD Subject: |
|
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FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax
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 firefighters, who are full-time employees of a local fire department, and volunteer firefighters who have successfully completed training requirements under §29-3-6 of this code and who are employed by a volunteer fire department, from payment of income and real and personal property taxes.
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data on the type and value of real and personal property owned by firefighters. However, the potential revenue loss to local governments would be significant.
We are also unable to estimate the revenue impact from the Personal Income Tax modification in this bill. We have no data on the amount of income which would be received by full-time firefighters and volunteer firefighters who meet the training qualifications. The potential loss of State General Revenue Fund would be significant beginning in FY2023.
Additional administrative costs would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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):
The revenue impact of this proposal on Property Tax collections cannot be determined. We have no data on the type and value of real and personal property owned by firefighters. However, the potential revenue loss to local governments would be significant.
We are also unable to estimate the revenue impact from the Personal Income Tax modification in this bill. We have no data on the amount of income which would be received by full-time firefighters and volunteer firefighters who meet the training qualifications. The potential loss of State General Revenue Fund would be significant beginning in FY2023.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to clarify that a wind power project is not a pollution control facility for purposes of §11-6A-1 et seq. of this code and is taxed as real property.
There are constitutional issues with this bill. The West Virginia Constitution, Article X, Section 1, allows the Legislature to exempt property that is used for certain charitable or public service purposes from property taxation. It does not allow exemptions based strictly on the status of the property owner.
In addition, Article X, Section 1 of the West Virginia Constitution allows the Legislature to exempt incomes below a fixed minimum from income taxation but does not allow exemptions based on a classification of persons by occupations.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov