COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 672
(By Senator McCabe)
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[Originating in the Committee on Finance;
reported February 26, 2007.]
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A BILL to amend and reenact §11-6C-1 and §11-6C-2 of the Code of
West Virginia, 1931, as amended, all relating to including
dealer boat inventory and rental car inventory in the special
method for appraising dealer vehicle inventory; and providing
the method for determining the market value of rental cars
held in dealer vehicle inventory.
Be it enacted by the Legislature of West Virginia:
That §11-6C-1 and §11-6C-2 of the Code of West Virginia, 1931,
as amended, be amended and reenacted all to read as follows:
ARTICLE 6C. SPECIAL METHOD FOR APPRAISING DEALER VEHICLE
INVENTORY.
11-6C-1. Inventory included within scope of article.
(a) Notwithstanding any other provisions of this code to the
contrary, vehicles, as that term is defined in section one, article
one, chapter seventeen-b of this code, consisting of individual
units of personal new or used property each of which must upon
sale, as a matter of law, be titled in the name of the retail purchaser and registered with the Division of Motor Vehicles, held
in inventory for sale or lease by new or used vehicle dealers
licensed under the provisions of article six, chapter seventeen-a
of this code shall be appraised for assessment purposes as set
forth in this article:
Provided, That house trailers, factory-
built homes, vehicles held as rental cars and boats sold by boat
retailers are included within the scope of this article.
(b) For purposes of this article, inventory subject to the
provisions of this article includes "dealer vehicle inventory",
"rental car inventory" and "dealer boat inventory". This article
does not apply to units of inventory which are included in fleet
sales, transactions between dealers or classified as heavy duty
trucks of sixteen thousand pounds or more gross vehicular weight.
§11-6C-2. Method for determining market value of dealer vehicle
inventory.
(a) For purposes of appraisal, the market value of dealer
vehicle inventory, as of the first day of July of each year, shall
be the gross sales or total annual sales of
such the inventory made
by
such the dealer during the preceding calendar year, divided by
twelve, for a dealer with respect to which or whom sales were made
during the entire preceding year. For the purposes of this
article, "gross sales" or "total annual sales" means the amount
received in money, credits, property, services or other
consideration from sales within this state without deduction on
account of the cost of the property sold, amounts paid for interest
or any other expenses whatsoever. Gross sales or total annual sales shall not be reduced by the value of an item of tangible
personal property which is traded in for the purpose of reducing
the purchase price of the item purchased. In the case of dealers
who were not in business during the entire calendar year
immediately preceding the first day of July of that calendar year,
the assessor shall estimate the market value of
such the inventory
based on
such data
as may be that is available to him or her:
Provided, That the assessor may extrapolate estimates using
such
sales data
as may be that is available and reliable when sales are
made for a period of three months or more during the prior year:
Provided, however, That there shall be excluded from the appraisal
calculations the value of those units which were not physically
held as inventory by the owner of the inventory at any time during
the preceding year. In all cases, the market value, so derived,
shall serve as the basis for calculating the appraised value.
(b) For purposes of appraisal, the market value of rental car
inventory, as of the first day of July of each year, shall be the
gross value of all rental cars made available by the vehicle dealer
on the first day of each month of the immediately preceding
calendar year: Provided, That the dealer shall add together the
gross values and divide that sum by twelve. For purposes of this
article, "gross value" means eighty-five percent of the
manufacturer's suggested retail price for each vehicle held as a
rental car without deduction on account of the cost of any
inventory, amounts paid for interest or any other expenses
whatsoever. In the case of dealers who were not in business during the entire calendar year immediately preceding the first day of
July of that calendar year, the assessor shall estimate the market
value of the rental car inventory based on data that is available
to him or her: Provided, however, That the assessor may
extrapolate estimates using the rental car data that is available
and reliable when rentals were made for a period of three months or
more during the prior year: Provided further, That there shall be
excluded from the appraisal calculations the value of those units
which were not physically held as rental car inventory by the owner
of the rental car inventory at any time during the preceding year.
In all cases, the gross value of rental car inventory, so derived,
shall serve as the basis for calculating the appraised value.
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