FISCAL NOTE
Date Requested: February 11, 2016
Time Requested: 03:09 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2504 |
Introduced |
HB4501 |
|
|---|
| CBD Subject: |
Counties, Real and Personal Property, Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund,Other Fund local governments
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 bill is to freeze assessments in counties with recent sharp decline in employment due to businesses closing down or sharply reducing their workforces; provide for decreased value presumption; and require revaluation of all residential property while the freeze is in effect.
The State Tax Department cannot determine the revenue loss associated with this bill. The term “major economic decline” is not defined in the bill.
We cannot estimate the additional administrative costs associated with this bill.
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 |
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 determine the revenue loss associated with this bill. The term “major economic decline” is not defined in the bill.
We cannot estimate the additional administrative costs associated with this bill.
Memorandum
The stated purpose of this bill is to freeze assessments in counties with recent sharp decline in employment due to businesses closing down or sharply reducing their workforces; provide for decreased value presumption; and require revaluation of all residential property while the freeze is in effect.
Article X, Section 1 of the W. Va. Constitution requires that taxation to be equal and uniform throughout the State, property is taxed in proportion to its value, and no one species of property which is taxed may be taxed higher than any other species of property of equal value. Allowing a freeze on the assessed value of residential real estate property based on a county experiencing a “major economic decline and resulting loss of employment for residents” may conflict with the Constitutional requirement that all property be taxed in property to its value.
The bill fails to identify which particular officer of the state or county would have the authority to determine which particular county or counties qualify for the implementation of the proposed freeze. The terms “major economic decline”, “major reduction in force”, “major employer” and “ripple effect” are not defined. The lack of definitions may result in enforcement issues.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov