FISCAL NOTE
Date Requested: February 23, 2017
Time Requested: 01:08 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2570 |
Introduced |
HB2687 |
|
|---|
| CBD Subject: |
Military and Veterans, Taxation |
|---|
|
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 bill is to provide that military veterans with a one hundred percent service related disability are exempt from property taxation.
Under the provisions of this bill, all property owned by a veteran with a one hundred percent service related disability would be exempt from Property Tax, including real estate and vehicles. This exemption would result in a revenue loss of roughly $2.5 million annually. The estimated revenue loss would be roughly $740,000 to the State General Revenue Fund, $910,000 to local county school boards, $680,000 to county commissions and $170,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2016 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
There would be minimal administrative costs to the State Tax Department for programming changes and to local governments in determining qualifying veterans.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
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 |
-2,500,000 |
Explanation of above estimates (including long-range effect):
Under the provisions of this bill, all property owned by a veteran with a one hundred percent service related disability would be exempt from Property Tax, including real estate and vehicles. This exemption would result in a revenue loss of roughly $2.5 million annually. The estimated revenue loss would be roughly $740,000 to the State General Revenue Fund, $910,000 to local county school boards, $680,000 to county commissions and $170,000 to municipalities. The distribution of estimated cost is based on information from taxes levied as reported in the Classified Assessed Valuations Taxes Levied for 2016 Tax Year publication of the State Tax Department and the incorporation of the calculation of local property tax share within the State Aid to Schools Formula.
There would be minimal administrative costs to the State Tax Department for programming changes and to local governments in determining qualifying veterans.
Memorandum
The stated purpose of this bill is to provide that military veterans with a one hundred percent service related disability are exempt from property taxation.
Article X, Section 1 of the W. Va. Constitution requires taxation to be equal and uniform throughout the State, property to be taxed in proportion to its value, and no one species of property be taxed higher than any other species of property of equal value. There are specific exemptions from ad valorem property taxation authorized by the Constitution, including property used for educational, literary, scientific, religious, or charitable purposes. This exemption does not fall under any of the constitutional limitations on the exemption of property from property taxes.
The bill does not limit the exemption that the veteran make take. This bill would permit a veteran to exempt not just his primary residence, but any real property he owns. This would also exempt any personal property belonging to the veteran, including vehicles, boats, etc.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov