H. B. 3113
(By Delegate Guthrie)
[Introduced March 13, 2009; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §5B-2H-1, §5B-2H-2,
§5B-2H-3, §5B-2H-4, §5B-2H-5, §5B-2H-6 and §5B-2H-7; to amend
and reenact §8-13-6 of said code; to amend said code by adding
thereto a new article, designated §11-6J-1, §11-6J-2 and §11-
6J-3; and to amend said code by adding thereto a new section,
designated §11-21-12i, all relating to arts, entertainment and
enterprise districts, definitions; scope; application by
political subdivisions to designate an arts, entertainment and
enterprise district; designation by the Secretary of Commerce
of an arts, entertainment and enterprise district; expansion;
tax status; rules to be promulgated by the Secretary of
Commerce; exemption from admission or amusement tax; property
tax credit allowed for buildings located within an arts,
entertainment and enterprise district; and allowing an
additional modification reducing federal adjusted gross income
for any income derived within an arts, entertainment and enterprise district by a qualifying residing artist.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §5B-2H-1, §5B-2H-2,
§5B-2H-3, §5B-2H-4, §5B-2H-5, §5B-2H-6 and §5B-2H-7; to amend and
reenact §8-13-6 of said code; to amend said code by adding thereto
a new article, designated §11-6J-1, §11-6J-2 and §11-6J-3; and to
amend said code by adding thereto a new section, designated §11-21-
12i, all to read as follows:
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.
ARTICLE 2H. ARTS, ENTERTAINMENT AND ENTERPRISE DISTRICTS.
§5B-2H-1. Definitions.
(a) In this article the following words have the meanings
indicated.
(b) "Artistic work" means an original and creative work that:
(1) Is created, written, composed or executed; and
(2) Falls into one of the following categories:
(A) A book or other writing;
(B) A play or performance of a play;
(C) A musical composition or the performance of a musical
composition;
(D) A painting or other picture;
(E) A sculpture;
(F) Traditional or fine crafts;
(G) The creation of a film or the acting within a film;
(H) The creation of a dance or the performance of a dance;
(I) The creation of original jewelry, clothing or clothing
design;
(J) The creation of original technology design or advancement;
or
(K) Any other product generated as a result of work listed in
paragraphs (A) through (J) of this subdivision.
(c) "Arts, entertainment and enterprise district" means a
developed district of public and private uses that:
(1) Is distinguished by physical, technology and cultural
resources that play a vital role in the life and development of the
community and contribute to the public through interpretive,
commercial, education and recreational uses; and
(2) Ranges in size from a portion of a political subdivision
to a regional district with a special coherence.
(d) "Arts, entertainment and enterprise" means a for-profit or
not-for-profit entity dedicated to visual, performing arts and
technology.
(e) "Political subdivision" means a county or municipal
corporation.
(f) "Qualifying residing artist or entrepreneur" means an
individual who:
(1) Owns or rents residential real property in the county
where the arts, entertainment and enterprise district is located;
(2) Conducts a business in the art, entertainment and
enterprise district; and
(3) Derives income from the sale or performance within the art, entertainment and enterprise district of an artistic or
technology for commercial use work that the individual created,
wrote, composed or executed, either alone or with others in the
arts, entertainment and enterprise district.
§5B-2H-2. Scope.
This article does not apply to tailoring services, clothing
alteration or jewelry repair.
§5B-2H-3. Application.
(a) The following political subdivisions may apply to the
Secretary of Commerce to designate an arts, entertainment and
enterprise district:
(1) A political subdivision for an area within that political
subdivision;
(2) With the prior consent of the municipal corporation,
county, on its own behalf or on behalf of a municipal corporation,
for an area in the municipal corporation; or
(3) Two or more political subdivisions jointly for an area
astride their common boundaries.
(b) The application shall:
(1) Be in the form and manner and contain the information that
the Secretary of Commerce requires by rule;
(2) Contain sufficient information to allow the Secretary of
Commerce to determine if the proposed district qualifies under
subsection (c), section one of this article and subsection (a),
section four of this article; and
(3) Be submitted for a political subdivision by its chief elected officer or, if none, its governing body.
§5B-2H-4. Designation.
(a)(1) Within sixty days after a submission date, the
Secretary of Commerce may designate one or more arts, entertainment
and enterprise districts from among the areas in the applications
timely submitted.
(2) A county may not receive more than one arts, entertainment
and enterprise district designation in a calendar year.
(b) The designation of the Secretary of Commerce is final.
(c) At any time, a political subdivision may reapply to the
Secretary of Commerce to designate as an arts, entertainment and
enterprise district an area that is not so designated.
§5B-2H-5. Expansion.
A political subdivision may apply to the Secretary of Commerce
to expand an existing arts, entertainment and enterprise district
in the same manner as the political subdivision would apply to
designate a new arts, entertainment and enterprise district. State
funds shall be made available to designated political subdivisions
for recruitment to designated arts, entertainment and enterprise
districts from within and outside of the state.
§5B-2H-6. Tax status.
(a) In an arts, entertainment and enterprise district:
(1) Each qualifying artist is eligible for the income tax
reduction modification under section twelve-i, article twenty-one,
chapter eleven of this code;
(2) The property tax credit under article six-j, chapter eleven of this code applies; and
(3) The exemption from the admissions or amusement tax under
section six, article thirteen, chapter eight of this code applies.
(b)(1) On or before July 1 preceding the effective date of its
establishment, the Secretary of Commerce shall notify the Tax
Commissioner that an arts, entertainment and enterprise district is
established.
(2) The reduction under section twelve-i, article twenty-one,
chapter eleven of this code applies to each taxable year beginning
after December 31 of the year in which the Secretary of Commerce
provides the notice required by subdivision (1) of this subsection.
(c) Private and trust owned buildings situated in arts,
entertainment and enterprise districts shall be entitled to low-
interest loans and grants when plans are presented to
municipalities or political subdivisions for conversion of
buildings to meet residential and retail use within two years of
the district designation, as provided in subsection (b) of this
section. These plans may include, but not be limited to:
affordable condominiums, rental units and retail space. Private
and trust owned building owners failing to submit such plans shall
be taxed at the highest possible property tax rate available to a
municipality or political subdivision.
§5B-2H-7. Rules.
The Secretary of Commerce shall promulgate rules pursuant to
the provisions of article three, chapter twenty-nine-a of this
code, pertaining to application procedures and criteria to designate arts, entertainment and enterprise districts.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 13. TAXATION AND FINANCE.
§8-13-6. Amusement tax.
(a) Every municipality shall have plenary power and authority
to levy and collect an admission or amusement tax upon any public
amusement or entertainment conducted within the corporate limits
thereof for private profit or gain. The tax shall be levied upon
the purchaser and added to and collected by the seller with the
price of admission, or other charge for the amusement or
entertainment. The tax shall not exceed two percent of the
admission price or charge, but a tax of one cent may be levied and
collected in any case.
(b) Any ordinance imposing such tax shall contain reasonable
rules and regulations governing the collection thereof by the
seller and the method of his or her payment and accounting therefor
to the municipality.
(c) A municipality may exempt from the admission or amusement
tax gross receipts from any admissions or amusement charge levied
by an arts, entertainment and enterprise or qualifying residing
artist in an arts, entertainment and enterprise district, as
provided in article two-h, chapter five-b of this code.
CHAPTER 11. TAXATION.
ARTICLE 6J. ARTS, ENTERTAINMENT AND ENTERPRISE DISTRICT TAX
CREDIT.
§11-6J-1. Definitions.
In this article, "arts, entertainment and enterprise
district," "arts and entertainment enterprise" and "qualifying
residing artist" have the meanings stated in section one, article
two-h, chapter five-b of this code.
§11-6J-2. Tax credit allowed.
The governing body of a county or municipal corporation may
grant, by law, a property tax credit against the county or
municipal corporation property tax imposed on a manufacturing,
commercial or industrial building that:
(1) Is located within an arts, entertainment and enterprise
district; and
(2) Is wholly or partially constructed or renovated to be
capable for use by a qualifying residing artist or an arts and
entertainment enterprise.
§11-6J-3. Duration of availability of credit.
A tax credit granted under this section may not be granted for
more than ten years.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12i. Additional modification reducing federal adjusted
gross income.
(a) As used in this section, "artistic work," "arts,
entertainment and enterprise district," and "qualifying residing
artist" have the meanings stated in section one, article two-h,
chapter five-b of this code.
(b) In addition to the amounts authorized to be subtracted
from federal adjusted gross income pursuant to subsection (c), section twelve of this article, any income derived within an arts,
entertainment and enterprise district by a qualifying residing
artist from the publication, production or sale of an artistic work
that the artist created, wrote, composed or executed in the arts,
entertainment and enterprise district.
(c) For the purpose of determining whether income is derived
within an arts, entertainment and enterprise district for the
purposes of this subsection, a qualifying artist shall allocate
receipts and expenses as the Tax Commissioner may require.
NOTE: The purpose of this bill is to allow for the creation of
arts, entertainment and enterprise districts within municipalities
or political subdivisions. The bill provides definitions. The
bill provides for the application process to be followed by the
political subdivisions, as determined the Secretary of Commerce.
The bill further provides that the Secretary of Commerce may
designate arts, entertainment and enterprise districts from among
the applicants. The bill further provides for tax breaks for
qualifying artists, property tax credits, and exemptions from the
admissions or amusement tax.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.