FISCAL NOTE
Date Requested: February 08, 2019
Time Requested: 11:25 AM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2740 |
Introduced |
HB2918 |
|
|---|
| CBD Subject: |
|
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|
FUND(S):
Public Employees Insurance Agency
Sources of Revenue:
Other Fund Public Employees Insurance Agency
Legislation creates:
Creates New Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to impose an additional assessment on certain real property. The bill requires the additional tax be transferred into the Public Employees Insurance Agency Stability Fund.
Passage of this bill would result in nonoccupied property owned by out-of-state individuals or other legal entities being assessed an additional $5 an acre. The revenue from this additional tax assessment would be dedicated to the Public Employees Insurance Agency to reduce costs of insurance.
According to our interpretation, passage of this bill would result in $8.5 million annually for the Public Employees Insurance Agency.
The additional administrative costs to the State Tax Department would be minimal. The additional administrative costs to local governments cannot be determined.
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 |
8,500,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would result in nonoccupied property owned by out-of-state individuals or other legal entities being assessed an additional $5 an acre. The revenue from this additional tax assessment would be dedicated to the Public Employees Insurance Agency to reduce costs of insurance.
According to our interpretation, passage of this bill would result in $8.5 million annually for the Public Employees Insurance Agency.
The additional administrative costs to the State Tax Department would be minimal. The additional administrative costs to local governments cannot be determined.
Memorandum
The stated purpose of this bill is to impose an additional assessment on certain real property. The bill requires the additional tax be transferred into the Public Employees Insurance Agency Stability Fund.
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. The proposed bill may be in violation of this section because it imposes a flat rate tax which has no relation to the value of the property.
The bill also fails to distinguish the different classes of property, and the different rates of tax thereon, established in Article X, Section 1 of the W. Va. Constitution. Under the proposed legislation, the same flat rate would be applied to residential, farm and commercial property.
In addition, the bill would violate Article IV, Section 2 of the U.S. Constitution, which provides that “The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States,” which is to say, a citizen of one state has a fundamental right “to take, hold, and dispose of property [in another state]; and an exemption from higher taxes or impositions than are paid by the other citizens of the state.” Corfield v. Coryell, 6 Fed. Cas. 546, 551-52 (C.C.E.D.Pa.1823).
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov