FISCAL NOTE
Date Requested: March 11, 2021
Time Requested: 11:32 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3235 |
Introduced |
SB628 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
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 clarify that motor vehicles subject to a lease of at least one year by the United States, the state, any county, district, city, village, town, political subdivision, or any state college or university, are exempt from ad valorem taxation when used for a public purpose.
The revenue impact of this proposal on Property Tax collections would be minimal. The bill seeks to clarify vehicle exemptions leased by government agencies.
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 would be minimal. The bill seeks to clarify vehicle exemptions leased by government agencies.
Additional administrative costs would be minimal.
Memorandum
The stated purpose of this bill is to clarify that motor vehicles subject to a lease of at least one year by the United States, the state, any county, district, city, village, town, political subdivision, or any state college or university, are exempt from ad valorem taxation when used for a public purpose.
Chapter 11, Article 3 of the W. Va. Code cites numerous exemptions that apply to property not leased out for profit. This bill presumes a lease for profit with the difference being that the motor vehicle is leased to government at some level. Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State This may give rise to constitutional challenges pursuant to Article X, Section 1 of the W. Va. Constitution as taxation must be “equal and uniform thought the state.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov