FISCAL NOTE

Date Requested: February 11, 2019
Time Requested: 11:38 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
3084 Introduced HB2967
CBD Subject: Counties, Taxation


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


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


The stated purpose of this bill is to permit a county to retain the excise taxes for the privilege of transferring title of real estate in that county. According to our interpretation of this bill, revenue collected by the State Property Transfer Tax would be retained by the county in which those taxes were collected. Passage of this bill would result in a loss to the General Revenue Fund of roughly $12.3 million in FY2020 and at least $13.0 million per year thereafter. There would be no additional administrative costs incurred by the State Tax Department.



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 -12,300,000 -13,000,000


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


According to our interpretation of this bill, revenue collected by the State Property Transfer Tax would be retained by the county in which those taxes were collected. Passage of this bill would result in a loss to the General Revenue Fund of roughly $12.3 million in FY2020 and at least $13.0 million per year thereafter. There would be no additional administrative costs incurred by the State Tax Department.



Memorandum


The stated purpose of this bill is to permit a county to retain the excise tax for the privilege of transferring title of real estate in that county. Current law provides for a fee of $20 in addition to the State Property Transfer Tax, which shall be deposited into the Affordable Housing Fund. Since this amount is identified as a “fee”, it is apparently not included in the language of the proposed new subsection (c), which is limited to “excise taxes”. If the “fee” imposed by subsection (a) is characterized as a tax, then a question would arise regarding how the intent to deposit that money into the Affordable Housing Fund can be made consistent with the intent of new subsection (c) that the money be retained in the county where it is collected.



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