FISCAL NOTE
Date Requested: January 25, 2016
Time Requested: 01:53 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2311 |
Introduced |
|
HJR31 |
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local property tax
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this resolution is to propose a Constitutional amendment that would lock the value of a homestead property owned by a citizen of sixty five years of age or older, for the purpose of calculating property taxes, at the assessed value when the owner occupier turned sixty five or purchased the property, whichever occurred later.
As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2016. The amendment would lock the value of a property for senior citizens who qualify for the Homestead Exemption at the assessed value when the senior citizen turned sixty-five or when the senior citizen purchased the property, whichever occurred later. The result of this resolution would be an annual loss of $4.0 million in Property Tax revenue in Year 1 and additional $4.0 million each year. The loss would be $8.0 million in Year 2 and $40.0 million in year 10. Some jurisdictions may be able to recoup some portion of lost tax revenues through the imposition of higher property tax rates.
The additional administrative costs for State Tax Department are estimated to be $20,000 for programming costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
20,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-40,000,000 |
Explanation of above estimates (including long-range effect):
As written, this resolution proposes an amendment to the Constitution of the State of West Virginia to be submitted to the voters of the State at the next general election to be held in the year 2016. The amendment would lock the value of a property for senior citizens who qualify for the Homestead Exemption at the assessed value when the senior citizen turned sixty-five or when the senior citizen purchased the property, whichever occurred later. The result of this resolution would be an annual loss of $4.0 million in Property Tax revenue in Year 1 and additional $4.0 million each year. The loss would be $8.0 million in Year 2 and $40.0 million in year 10. Some jurisdictions may be able to recoup some portion of lost tax revenues through the imposition of higher property tax rates.
The additional administrative costs for State Tax Department are estimated to be $20,000 for programming costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov