Supplement: WV HB2984 | 2021 | Regular Session | Auditor, State of WV
For additional supplements on West Virginia HB2984 please see the Bill Drafting List
Bill Title: To revise the West Virginia Tax Increment Financing Act to authorize a county commission or municipal levying body to modify the termination times of certain districts
Status: 2021-03-08 - To House Finance [HB2984 Detail]
Download: West_Virginia-2021-HB2984-Auditor_State_of_WV.html
The purpose of proposed House Bill 2984 is to amend the West Virginia Code as it relates to property tax increment financing districts and real property of public service businesses situated within such districts. The bill amends the definitions of base assessed value, current assessed value, and payment in lieu of taxes, and adds a definition for public service business. The bill requires the Auditor to apportion and certify the value of real property owned by a public service business within a development or redevelopment district to the county commission and municipality that created such district, and requires a sheriff to properly allocate taxes and levies apportioned by the Auditor.
We do not have records available to us which would allow us to reasonably project what the financial impacts would be on the budgets of the respective taxing jurisdictions (municipalities, counties and county boards of education) assuming passage and implementation of the proposed legislation. We understand the underlying premise and aspirational goal of the legislation is that the various taxing jurisdictions would suffer no detriment upon passage of the legislation and the creation of new tax increment financing districts would result in additional property investment for economic development purposes which would grow the tax base in future years.
Currently, the State Auditor determines the property assessment amounts of public utilities for property tax purposes in accordance with the provisions of Chapter 11, Article 6, Section 13 of the West Virginia Code. Our review of the proposed legislation leads us to the conclusion that the current reporting methodology used to report and assess the holding of public utilities in West Virginia does not provide the State Auditor with the necessary refined data to implement the provisions of the proposed Bill for public utilities to accurately, fairly and equitably implement the Bill. However, the State Auditor's Office is willing to work with the West Virginia Legislature and the West Virginia State Tax Department which plays an integral role in the property valuation process to bring forward the necessary amendments to state law which would make the implementation of the propose Bill possible.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov
Bill Title: To revise the West Virginia Tax Increment Financing Act to authorize a county commission or municipal levying body to modify the termination times of certain districts
Status: 2021-03-08 - To House Finance [HB2984 Detail]
Download: West_Virginia-2021-HB2984-Auditor_State_of_WV.html
FISCAL NOTE
| Date Requested: March 08, 2021 Time Requested: 11:54 AM |
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FUND(S):
Special Revenue - State FundSources of Revenue:
Special FundLegislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 2984 is to amend the West Virginia Code as it relates to property tax increment financing districts and real property of public service businesses situated within such districts. The bill amends the definitions of base assessed value, current assessed value, and payment in lieu of taxes, and adds a definition for public service business. The bill requires the Auditor to apportion and certify the value of real property owned by a public service business within a development or redevelopment district to the county commission and municipality that created such district, and requires a sheriff to properly allocate taxes and levies apportioned by the Auditor.
Fiscal Note Detail
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2021 Increase/Decrease (use"-") |
2022 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 | 0 |
Explanation of above estimates (including long-range effect):
We do not have records available to us which would allow us to reasonably project what the financial impacts would be on the budgets of the respective taxing jurisdictions (municipalities, counties and county boards of education) assuming passage and implementation of the proposed legislation. We understand the underlying premise and aspirational goal of the legislation is that the various taxing jurisdictions would suffer no detriment upon passage of the legislation and the creation of new tax increment financing districts would result in additional property investment for economic development purposes which would grow the tax base in future years.
Memorandum
Currently, the State Auditor determines the property assessment amounts of public utilities for property tax purposes in accordance with the provisions of Chapter 11, Article 6, Section 13 of the West Virginia Code. Our review of the proposed legislation leads us to the conclusion that the current reporting methodology used to report and assess the holding of public utilities in West Virginia does not provide the State Auditor with the necessary refined data to implement the provisions of the proposed Bill for public utilities to accurately, fairly and equitably implement the Bill. However, the State Auditor's Office is willing to work with the West Virginia Legislature and the West Virginia State Tax Department which plays an integral role in the property valuation process to bring forward the necessary amendments to state law which would make the implementation of the propose Bill possible.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov
