FISCAL NOTE

Date Requested: January 12, 2022
Time Requested: 04:53 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1364 Introduced SB152
CBD Subject:


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 from property tax certain real properties in this state-owned by a nonprofit corporation with the purpose of organizing, support and maintaining a contemporary agricultural and industrial fair and exposition. The State Tax Department cannot quantify the revenue loss associated with this proposal. If this proposal only applies to the State Fair and county fairs, the revenue loss would not be significant. Additional administrative costs to the State Tax Department and local governments would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
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 State Tax Department cannot quantify the revenue loss associated with this proposal. If this proposal only applies to the State Fair and county fairs, the revenue loss would not be significant. Additional administrative costs to the State Tax Department and local governments would be minimal.



Memorandum


The stated purpose of this bill is to exempt from property tax certain real properties in this state owned by a nonprofit corporation with the purpose of organizing, support and maintaining a contemporary agricultural and industrial fair and exposition. A primary concern is whether the Legislature has the authority under West Virginia Constitution Article X, Section 1, to exempt this type of property from ad valorem taxation. The Constitution generally requires that property be owned by an exempt entity and be used exclusively for exempt purposes in order to be eligible for the exemption.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov