FISCAL NOTE
Date Requested: January 14, 2020
Time Requested: 11:42 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2066 |
Introduced |
HB4190 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local governments
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 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 FY2021 and at least $12.4 million per year thereafter.
There will be no additional administrative costs to the State Tax Department associated with this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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 |
-12,400,000 |
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 FY2021 and at least $12.4 million per year thereafter.
There will be no additional administrative costs to the State Tax Department associated with this bill.
Memorandum
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.
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