FISCAL NOTE

Date Requested: January 20, 2019
Time Requested: 11:04 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2184 Introduced SB333
CBD Subject: Taxation


FUND(S):

General Revenue Fund, local governments

Sources of Revenue:

General Fund local property tax revenue

Legislation creates:

Decreases Existing Revenue



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 personal property taxation private passenger automobiles that are 25 years old or older. As written, the bill provides that private passenger automobiles that are 25 years old or older are exempt from Property Tax. This revenue impact of this proposed exemption would be a minimal decrease in State revenue and a loss of $1.5 million in local revenue for counties, county boards of education and municipalities. Additional administrative costs to the State Tax Department and local governments would be minimal.



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 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 -1,500,000


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


As written, the bill provides that private passenger automobiles that are 25 years old or older are exempt from Property Tax. This revenue impact of this proposed exemption would be a minimal decrease in State revenue and a loss of $1.5 million in local revenue for counties, county boards of education and municipalities. The average statewide assessed value of a car over 25 years old is slightly over $900. 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 personal property taxation private passenger automobiles that are 25 years old or older. Article X, Section 1 of the W. Va. Constitution requires 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. The proposed bill also assigns the value of $5,000 for all antique vehicles as defined in W. Va. Code §17A-10-3a, that is, vehicles more than 25 years old and owned solely as a collector’s item. This provision also potentially violates the constitutional provisions of Article X, Section 1.



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