H. B. 4061
(By Delegate Michael)
[Introduced January 20, 2006; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §35-1-1, §35-1-4, §35-1-7 and §35-1-8
of the Code of West Virginia, 1931, all relating to lands held
by any individual church, parish, congregation or branch of
any religious sect, society or denomination within this state;
removing acreage limitations; providing procedures for
limiting and assessing tax-exempt status.
Be it enacted by the Legislature of West Virginia:
That §35-1-1, §35-1-4, §35-1-7 and §35-1-8 of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 1. RELIGIOUS ORGANIZATIONS.
§35-1-1. Validation of transfers for use or benefit of religious
organizations.
Every conveyance, devise or dedication of land which has
heretofore been made and has not been declared void in any suit, action or proceeding, or has not been treated and acted upon as
void under the law heretofore existing, and every conveyance,
devise or dedication of land hereafter made,
if it does not
conflict with the limitations of section eight of this article, for
the use or benefit of any church, religious sect, society or
denomination as a place for public worship, or as a burial place,
or a residence for a minister, or for the use or benefit of any
church, religious sect, society or denomination as a residence for
a bishop or other clergyman or minister who, though not in special
charge of a congregation is yet an officer of such church,
religious sect, society or denomination, and employed under its
authority and about its business; or as a location for a parish
house or house for the meeting of societies or committees of the
church, religious sect, society or denomination, or of others for
the transaction of business connected therewith; or as a place of
residence of a sexton or caretaker if the same is adjacent to or
nearby the land used for public worship or the other purposes
aforesaid, shall be valid, and shall be construed to give the local
parish, congregation or branch of such church, religious sect,
society or denomination, to which any such land or property has
been or shall be so conveyed, devised or dedicated, the control
thereof, unless from the intent expressed in the conveyance, grant,
will, gift or dedication, some other or larger body be given such
control. Any land so conveyed, devised or dedicated shall be held and used for the purposes aforesaid and no other.
§35-1-4. Insufficient designations of beneficiaries or objects not
to cause failure of trust; acquisition, conveyance,
etc., of property.
No conveyance, devise, dedication, gift or bequest
if the same
does not conflict with the limitations of section eight of this
article, and no gift or bequest hereafter made to any church,
religious sect, society, denomination, or to any individual church,
congregation, parish or branch within this state, or to the trustee
or trustees for either, shall fail or be declared void for
insufficient designation of the beneficiaries in, or the objects
of, any trust annexed to such conveyance, devise, dedication, gift
or bequest in any case where a lawful trustee or trustees of such
church, religious sect, society, denomination, or of any individual
church, parish, congregation or branch, are in existence or where
such church, religious sect, society, denomination, or any
individual church, parish, congregation or branch, is capable of
appointing such trustee or trustees as provided in this article;
but such conveyance, devise, dedication, gift or bequest shall be
valid; and whenever the object of such trust shall be undefined, or
so uncertain as not to admit of enforcement by a court of chancery,
then such conveyance, devise, dedication, gift or bequest shall
inure and pass to the trustee or trustees of the beneficiary
church, religious sect, society, denomination, individual church, parish, congregation or branch, to be held, managed, and the
principal or income appropriated for the religious and benevolent
uses of such church, religious sect, society, denomination, or
individual church, parish, congregation, or branch, as such trustee
or trustees may determine, by and with the approval of the bishop,
vestry, Board of Deacons, Board of Stewards, Official Board, Board
of Elders, Board of Consultors, or other Authorities which, under
the rules or usages of such church, religious sect, society,
denomination, or individual church, parish, congregation or branch,
have charge of the Administration of the temporalities thereof.
Whenever the laws, rules or ecclesiastic polity of any church
or religious sect, society or denomination commits to its duly
elected or appointed bishop, minister or other ecclesiastical
officer, authority to administer its affairs, such duly elected or
appointed bishop, minister or other ecclesiastical officer shall
have power to acquire by deed, devise, gift, purchase or otherwise,
any real or personal property, for any purpose authorized and
permitted by its laws, rules or ecclesiastic polity, and not
prohibited by the laws of West Virginia, and the power to hold,
improve, mortgage, sell and convey the same in accordance with such
laws, rules and ecclesiastic polity, and in accordance with the
laws of West Virginia. In the event of the transfer, removal,
resignation or death of any such bishop, minister or other
ecclesiastical officer, the title and all rights with respect to any such property shall pass to and become vested in his
or her
duly elected or appointed successor immediately upon election or
appointment, and pending election or appointment of such successor,
such title and rights shall be vested in such person or persons as
shall be designated by the laws, rules or ecclesiastic polity of
such church or religious sect, society or denomination.
All deeds, deeds of trust, mortgages, wills or other
instruments heretofore made to or by a duly elected or appointed
bishop, minister or other ecclesiastical officer, who, at the time
of the making of any such deed, deed of trust, mortgage, will or
other instrument, or thereafter, had authority to administer the
affairs of any church or religious sect, society or denomination
under its laws, rules or ecclesiastic polity, transferring
property, real or personal, of any such church, or religious sect,
society or denomination, are hereby ratified and declared valid.
All transfers of title and rights with respect to property, prior
to the effective date of the ratification of this section, from a
predecessor bishop, minister or other ecclesiastical officer who
had resigned or died, or has been transferred or removed, to his
or
her duly elected or appointed successor, by the laws, rules or
ecclesiastic polity of any such church or religious sect, society
or denomination, either by written instruments or solely by virtue
of the election or appointment of such successor, are also hereby
ratified and declared valid.
No gift, grant, bequest or devise hereafter made to any such
church or religious sect, society or denomination, or the duly
elected or appointed bishop, minister or other ecclesiastical
officer authorized to administer its affairs, shall fail or be
declared void for insufficient designation of the beneficiaries in,
or the objects of, any trust annexed to such gift, grant, bequest
or devise; but such gift, grant, bequest or devise shall be valid,
provided that whenever the objects of any such trust shall be
undefined, or so uncertain as not to admit of specific enforcement
by the chancery courts of the state, such gift, grant, bequest or
devise shall be held, managed, and the principal or income
appropriated, for the religious and benevolent uses of such church
or religious sect, society or denomination by its duly elected or
appointed bishop, minister or other ecclesiastical officer
authorized to administer its affairs.
This section shall not affect rights or litigation vested or
pending on or before the day upon which this section becomes
effective, nor shall it be so construed as to effect an implied
repeal of any other provisions of this chapter.
The rights created and remedies provided herein shall be
construed as cumulative and not exclusive.
§35-1-7. Same -- May take and hold property.
The trustee or trustees of any church, religious sect, society
or denomination, or of any individual church, parish, congregation or branch, within this state, shall have power to receive
donations, gifts and bequests of personal property, and,
subject to
the limitations of section eight of this article, to take by
devise, conveyance or dedication or to purchase and to hold, real
property, in trust for such church, religious sect, society or
denomination, or for any individual church, parish, congregation or
branch; and in their own name or names to sue or be sued in all
proper actions and suits, for or on account of the real or personal
property so held or claimed, and for and on account of any matters
relating thereto:
Provided, That, in the absence of gross
negligence, no trustee shall be personally liable for any tort
arising from or growing out of the ownership of property as a
trustee and no such action or suit shall abate because of the
death, removal or resignation of any trustee, or the appointment of
another trustee, but may be proceeded with in the name of the
trustee or trustees by or against whom it was instituted, or in the
name of the succeeding trustee or trustees. The trustee or
trustees shall be accountable to that church, religious sect,
society, or denomination, or to that individual church, parish,
congregation or branch, for which he,
she or they hold in trust,
for the use and management of such property, and shall surrender it
to any person or persons authorized to demand it.
§35-1-8. Limitations and procedures for assessing eligibility for
tax-exempt status.
(a) Every conveyance, devise or dedication of land described
in this article, to the extent provided by section nine, article
three, chapter eleven, is exempt from ad valorem property tax:
Provided, That if such property is not used for an exempt purpose
said property is subject to recapture of any uncollected ad valorem
property taxes from the date of acquisition or the seven years
immediately preceding whichever is shorter.
(b) The tax assessor of the county where the property is
located shall provide written certification on an annual basis as
to the taxability and classification of the property, specifically
whether undeveloped land is being used primarily, directly, and
immediately for the tax exempt purpose, and any party claiming to
be aggrieved may challenge said certification pursuant to sections
twenty-four-a and twenty-five of article three, chapter eleven.
NOTE: The purpose of this bill is to remove the acreage
limitations on property owned by religious organizations used for
religious purposes.
Strike-throughs and indicate language that would be stricken
from the present law, and underscoring indicates new language that
would be added.
Strike-throughs and underscoring are omitted in §35-1-8
because it is completely rewritten.