FISCAL NOTE

Date Requested: January 09, 2019
Time Requested: 04:11 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1753 Introduced HB2089
CBD Subject: Taxation


FUND(S):

STATE FUNDS - GENERAL REVENUE

Sources of Revenue:

General Fund

Legislation creates:

Increases Existing Expenses, Creates New Program



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of proposed House Bill 2089 is to create a method by which aggrieved taxpayers, who believe they were erroneously assessed or overpaid taxes based on an overestimation of unintentional mistake, may seek additional review by the State Auditor in order to reverse an adverse decision by a county commission. The proposed Bill clarifies that relief may be sought for overpayment of taxes by a taxpayer. The Bill establishes a process to petition the Auditor for additional review of a county commission’s decision. In addition, the Bill grants the Auditor express authority to order the county commission to make reimbursement or issue a tax credit where a county commission’s decision is found to be clearly erroneous. Finally, the Bill grants the Auditor express authority to promulgate emergency rules in order to comply with this section.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 372,000 362,500
Personal Services 0 335,000 335,000
Current Expenses 0 25,000 25,000
Repairs and Alterations 0 0 0
Assets 0 12,000 2,500
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


We believe the provisions of the proposed legislation would provide taxpayers with an alternative procedure to the current provisions in State law where a negative decision has been rendered regarding a petition filed with the County Commission acting in its capacity as a Board of Equalization and Review concerning reviewing assessments made by the particular County Assessor. It would appear that taxpayers could move to pay the assessed amount and then protest the assessment as being erroneous and, therefore, the payment by them was an overpayment, either in whole or in part. Currently, taxpayers are required to appeal a negative decision regarding property tax assessment to the State Circuit Courts. We have no ability to make an informed estimate of the number of taxpayers who might take advantage of an alternative review process outside the Circuit Court System. However, implementing this process would require additional staff within the State Auditor’s Office, including staff with specific technical competencies. We also anticipate the costs of implementing the new program would be funded by additional appropriations from the State General Revenue Fund.



Memorandum


We conservatively estimate that staff additions would need to include one attorney, one hearing examiner, one court reporter and two clerical positions. In addition, a modest amount of equipment would be needed to make these staff members functional and we would project a modest amount of travel expenses in order to hold hearings around the State to hear evidence with respect to taxpayer petitions.



    Person submitting Fiscal Note: Michael E. Sizemore, CPA
    Email Address: Mike.Sizemore@wvsao.gov