COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 79

(By Senators Craigo, Ball, Kessler, Bowman, Anderson, Dittmar, Ross, Plymale and Sharpe)

____________

[Originating in the Committee on the Judiciary;


reported January 28, 2000.]

____________


A BILL to amend and reenact section one-b, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to specifying a fair methodology for the appraisal of real property undergoing development; setting forth definitions; establishing factor for valuation; providing for legislative rule; providing that the sale or development of one lot within a recorded plan shall not be the sole factor in valuing the remaining property for ad valorem real property tax purposes; and setting effective dates.

Be it enacted by the Legislature of West Virginia:
That section one-b, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 3. ASSESSMENTS GENERALLY.

§11-3-1b. Recordation of plat or designation of land use not to be basis for assessment; factors for valuation; legislative rule; effective dates.

(a) The recordation of a plan or plat, or the designation of proposed land use by a county or municipal planning authority shall not be used by the assessor as a basis in the valuation or assessment of real property for the purposes of taxation, except as hereafter provided. until such time as the actual use of such real property or any part thereof, has changed to correspond to the plan, plat or proposed use The valuation of real property contained in a recorded plan or plat is as follows:
(1) When a lot or parcel within a recorded plan or plat is sold, that lot shall be revalued by the county assessor. In no event may the remaining lots within the recorded plan or plat be automatically revalued solely based upon the sale of one or two lots within the recorded plan or plat.
(2) When land contained within a recorded plan or plat is developed and actually used for a commercial, residential or industrial purpose, such land shall be revalued by the county assessor or the tax commissioner, depending upon whoever has authority over the same, but in no event may the remaining lots within the recorded plan or plat be automatically revalued solely based upon the sale of one or two lots within the recorded plan or plat.
(b) For valuation of the remaining lots or parcels or undeveloped portion within the recorded plan or plat, the following factors shall be taken into consideration in determining the valuation: (1) access and availability of improved roads; (2) access and availability of sewage disposal and drinking water supply, including, but not limited to, the use of such factors as availability of public water and sewage systems, private water systems, water wells or potential water wells, private sewage and septic systems or potential private sewage and septic systems; (3) access and availability of electrical, telephone and other utility services; and (4) percentage of completion of improvements and infrastructure development. The assessor shall annually determine the percentage of completion of improvements and infrastructure development. The state tax commissioner shall propose a legislative rule for submission to the legislature pursuant to the provisions of article three, chapter twenty-nine-a of this code, which rule shall describe in detail the methodology and use of the factors set out above, as well as any other factors determined by the tax commissioner to be applicable, for valuation of percentage completion of improvements and infrastructure development. The remaining lots or parcels or undeveloped portion within the recorded plan or plat are not farm property for purposes of valuation of farm property under section ten, article one-a, of this chapter, or managed timberland for purposes of valuation of managed timberland under sections eleven and eleven-a, article one-c of this chapter. For purposes of classification of property for levy purposes under section five, article eight of this chapter, developed lots or parcels shall not be reclassified from Class III to Class II until the developed lot or parcel is used and occupied by the owner thereof exclusively for residential purposes.
(c) The designation of proposed land use by a county or municipal planning authority may not be used or considered by an assessor in determining the appraised value of property included under a designation of proposed land use by a county or municipal planning authority until such time as the actual use of the real property has changed to correspond to the proposed use.
(d) The amendments made to this section by the Legislature in two thousand shall become effective on the first day of July, two thousand, and shall be effective as to all plans or plats filed after the thirtieth day of June, two thousand. The provisions of the amendments made to this section in two thousand do not apply to unsold lots or parcels or undeveloped land contained within recorded plans or plats which were recorded prior to the first day of July, two thousand: Provided, That in no event may the appraised value of unsold lots or parcels or undeveloped land contained within these recorded plans or plats be less than their appraised value as of the first day of July, two thousand.



NOTE: The purpose of this bill is to provide that the sale of one lot does not change the value of the remaining recorded plan for tax purposes. Factors for the valuation for real property tax purposes are established.

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