Introduced Version
House Bill 3068 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 3068
(By Delegates Craig, R.Phillips and Williams)
[Introduced March 22, 2013; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §11-6F-1 and §11-6F-2 of the Code of
West Virginia, 1931, as amended, all relating to expanding
the property appraisal provisions of this article to include
qualified capital additions to coal production facilities.
Be it enacted by the Legislature of West Virginia:
That §11-6F-1 and §11-6F-2 of the Code of West Virginia, 1931,
as amended, be amended and reenacted, all to read as follows:
ARTICLE 6F. SPECIAL METHOD FOR APPRAISING QUALIFIED CAPITAL
ADDITIONS TO MANUFACTURING FACILITIES AND COAL
PRODUCTION FACILITIES.
§11-6F-1. Legislative findings.
The Legislature finds that the encouragement of economic
growth and development in this state is in the public interest and
promotes the general welfare of the people of this state. The Legislature further finds that the ad valorem property tax
valuation set forth in this article for certified capital addition
property, as defined in section two of this article, will help
preserve the tax base and preserve and create jobs attributable to
manufacturing facilities
and coal production facilities
existing in
this state.
§11-6F-2. Definitions.
As used in this article, the term:
(a) "Certified capital addition property" means all real
property and personal property included within or to be included
within a qualified capital addition to a manufacturing facility
or
included within a qualified capital addition to a coal production
facility
that has been certified by the State Tax Commissioner in
accordance with section four of this article: Provided, That
airplanes and motor vehicles licensed by the Division of Motor
Vehicles shall in no event constitute certified capital addition
property.
(b) "Coal production facility" means any mine, preparation
plant, loading facility, storage facility, building, complex of
buildings and associated facilities and apparatus used
for the
performance of the act or process of exploring, developing,
severing extracting, reducing to possession, washing, processing,
loading for shipment and shipment for sale of any coal or coal
product including any reclamation, waste disposal or environmental activities associated therewith: Provided, That coal reserves and
other real estate upon which a coal production facility is located
area not considered a part of the facility for purposes of this
article.
_____(b) (c) "Manufacturing" means any business activity classified
as having a sector identifier, consisting of the first two digits
of the six-digit North American Industry Classification System code
number of thirty-one, thirty-two or thirty-three or the six digit
code number 211112.
(c) (d) "Manufacturing facility" means any factory, mill,
chemical plant, refinery, warehouse, building or complex of
buildings, including land on which it is located, and all
machinery, equipment, improvements and other real property and
personal property located at or within the facility used in
connection with the operation of the facility in a manufacturing
business.
(d) (e) "Personal property" means all property specified in
subdivision (q), section ten, article two, chapter two of this code
and includes, but is not limited to, furniture, fixtures, machinery
and equipment, pollution control equipment, computers and related
data processing equipment, spare parts and supplies.
(e) (f) "Qualified capital addition to a manufacturing
facility" means either:
(1) All real property and personal property, the combined original cost of which exceeds $50 million to be constructed,
located or installed at or within two miles of a manufacturing
facility owned or operated by the person making the capital
addition that has a total original cost before the capital addition
of at least $100 million. If the capital addition is made in a
steel, chemical or polymer alliance zone as designated from
time-to-time by executive order of the Governor, then the person
making the capital addition may for purposes of satisfying the
requirements of this subsection join in a multiparty project with
a person owning or operating a manufacturing facility that has a
total original cost before the capital addition of at least $100
million if the capital addition creates additional production
capacity of existing or related products or feedstock or derivative
products respecting the manufacturing facility, consists of a
facility used to store, handle, process or produce raw materials
for the manufacturing facility, consists of a facility used to
store, handle or process natural gas to produce fuel for the
generation of steam or electricity for the manufacturing facility
or consists of a facility that generates steam or electricity for
the manufacturing facility, including but not limited to a facility
that converts coal to a gas or liquid for the manufacturing
facility's use in heating, manufacturing or generation of
electricity. Beginning on and after July 1, 2011, when the new
capital addition is a facility that is or will be classified under the North American Industry Classification System with a six digit
code number 211112, or is a manufacturing facility that uses
product produced at a facility with code number 211112, then
wherever the term "100 million" is used in this subsection, the
term "20 million" shall be substituted and where the term "50
million" is used, the term "10 million" shall be substituted; or
(2) (A) All real property and personal property, the combined
original cost of which exceeds $2 billion to be constructed,
located or installed at a facility, or a combination of facilities
by a single entity or combination of entities engaged in a unitary
business, that:
(i) Is or will be classified under the North American Industry
Classification System with a six digit code number 211112; or
(ii) Is a manufacturing facility that uses one or more
products produced at a facility with code number 211112; or
(iii) Is a manufacturing facility that uses one or more
products produced at a facility described in subparagraph (ii) of
this subdivision.
(B) No preexisting investment made, or in place before the
capital addition shall be required for property specified in this
subdivision (2). The requirements set forth in subdivision (1) of
this subsection shall not apply to property specified in this
subdivision (2) relating to:
(i) Location or installation of investment at or within two miles of a manufacturing facility owned or operated by the person
making the capital addition;
(ii) Total original cost of preexisting investment before the
capital addition of at least $100 million or $20 million; or
(iii) Multiparty projects.
(g) "Qualified capital addition to a coal production facility"
means all personal property, the combined original cost of which
exceeds $10 million to be constructed, located or installed at or
within two miles of a coal production facility owned or operated by
the person making the capital addition that has a total original
cost before the capital addition of at least $20 million if the
capital addition creates additional coal production capacity or if
the capital addition consists of a facility used to increase the
capacity of the coal production facility to store, handle, process
or load coal.
_____(f) (h) "Real property" means all property specified in
subdivision (p), section ten, article two, chapter two of this code
and includes, but is not limited to, lands, buildings and
improvements on the land such as sewers, fences, roads, paving and
leasehold improvements: Provided, That for capital additions
certified on or after July 1, 2011, the value of the land before
any improvements shall be subtracted from the value of the capital
addition and the unimproved land value shall not be given salvage
value treatment.
NOTE: The purpose of this bill is to
expand the property
appraisal provisions of this article to include qualified capital
additions to coal production facilities.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.