FISCAL NOTE
Date Requested: February 11, 2020
Time Requested: 12:14 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1648 |
Introduced |
HB4815 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Public Employees Insurance Agency
Sources of Revenue:
Special Fund
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.
According to our interpretation, passage of this bill would result in $11.0 million annually for the Public Employees Insurance Agency Stability Fund.
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 |
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 |
0 |
11,000,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would result in $11.0 million annually for the Public Employees Insurance Agency Stability Fund.
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 bill’s arbitrary $5 per acre assessment would bear no relation to the value of the property.
In addition, by imposing an additional tax on certain property based on its ownership, the bill would result in unequal taxation of similar properties owned by residents and nonresidents. Furthermore, that inequality, inasmuch as it discriminates against nonresidents, may be considered a violation of the U.S. Constitution’s guarantee of equal protection under the fifth and fourteenth amendments.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov