H. B. 4078

(By Delegates Pino, Johnson, Whitman, Faircloth and Smirl)

(Originating in the House Committee on the Judiciary)

[January 16, 1996]

A BILL to amend and reenact sections one and five, article six-c, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the special method for appraising dealer inventory; making technical revisions to clarify appropriate code reference; and extending date by which the tax commissioner reports to the joint committee on government and finance.

Be it enacted by the Legislature of West Virginia:
That sections one and five, article six-c, chapter eleven of the code of West Virginia, one thousand nine hundred thirty- one, as amended, be amended and reenacted to read as follow:
§11-6C-1. Inventory included within scope of article.
Notwithstanding any other provisions of law, inventory of vehicles, as that term is defined in section one, article one, chapter seventeen-b of this code, that is held for sale or lease by new or used vehicle dealers licensed under the provisions of article six-c six, chapter seventeen-a of this code, provided that house trailers and factory-built homes shall be included within the scope of this article, consisting of individual units of personal new or used property, each unit of which, upon its sale to a retail purchaser, must, as a matter of law, be titled in the name of the retail purchaser and registered with the division of motor vehicles, shall be appraised for assessment purposes, as set forth in this article.
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. For purposes of this article, inventory subject to the provisions of this article shall be denoted "dealer vehicle inventory".
§11-6C-5. Intent of this article; tax commissioner to promulgate regulations rules.
(a) This article is adopted to address the lack of uniformity, audit difficulties and business management issues arising in this state with respect to the assessment of the personal property held as new and used dealer vehicle inventory. Accordingly, the Legislature finds and declares that the adoption of this article will provide a more reliable and uniform method of determining market value of dealer vehicle inventory; minimize audit problems associated with such property; provide a predictable revenue stream for levying bodies; maximize the owner's ability to manage inventory; and provide clear guidance to local authorities by superseding the wide variety of otherwise lawful appraisal methods now in use in this state.
(b) The tax commissioner shall have the power to promulgate such rules and regulations as may be necessary to implement the provisions of this article: Provided, That the tax commissioner shall provide to the joint committee on government and finance by the first day of January March for the next two fiscal years a report detailing the results of the administration of this article.

NOTE: The purpose of this bill is to make a technical modification to the reporting requirements of the tax department and correct an incorrect code cite, both relating to dealers reporting vehicle inventory.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.