COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 70
(By Senators McCabe, Foster, Unger, Palumbo and Chafin)
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[Originating in the Committee on Finance;
reported March 2, 2010.]
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A BILL to amend and reenact §11-8-6e, §11-8-10, §11-8-12 and §11-8-
14 of the Code of West Virginia, 1931, as amended, all
relating to the clarification in the code that a municipality
or county issuing bonds approved by an election pursuant to
article one, chapter thirteen of said code is not subject to
the restriction described in subsection (c), section six-e,
article eight, chapter eleven of said code; and clarifying
that a county, municipality and board of education shall take
into account any credit payment coming from the United States
when calculating the levy rate.
Be it enacted by the Legislature of West Virginia:
That §11-8-6e, §11-8-10, §11-8-12 and §11-8-14 of the Code of
West Virginia, 1931, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 8. LEVIES.
§11-8-6e. Effect on regular levy rate when appraisal results in
tax increase; public hearings.
(a) Notwithstanding any other provision of law, where any
annual appraisal, triennial appraisal or general valuation of
property would produce an assessment that would cause an increase
of one percent or more in the total projected property tax revenues
that would be realized were the then current regular levy rates by
the county commission and the municipalities to be imposed, the
rate of levy shall be reduced proportionately as between the county
commission and the municipalities and for all classes of property
for the forthcoming tax year so as to cause such rate of levy to
produce no more than one hundred one percent of the previous year's
projected property tax revenues from extending the county
commission and municipality levy rates, unless there has been
compliance with subsection (c) of this section.
An additional appraisal or valuation due to new construction
or improvements to existing real property, including beginning
recovery of natural resources, and newly acquired personal property
shall not be an annual appraisal or general valuation within the
meaning of this section, nor shall the assessed value of such
improvements be included in calculating the new tax levy for
purposes of this section. Special levies shall not be included in
the reduced levy calculation set forth in subsection (b) of this
section.
(b) The reduced rates of levy shall be calculated in the
following manner:
(1) The total assessed value of each class of property as it
is defined by section five, article eight of this chapter for the
assessment period just concluded shall be reduced by deducting the
total assessed value of newly created properties not assessed in
the previous year's tax book for each class of property;
(2) The resulting net assessed value of Class I property shall
be multiplied by .01; the value of Class II by .02; and the values
of Class III and IV, each by .04;
(3) Total the current year's property tax revenue resulting
from regular levies for each county commission and municipality and
multiply the resulting sum by one hundred one percent:
Provided,
That the one hundred one percent figure shall be increased by the
amount the county's or municipality's increased levy provided for
in subsection (b), section eight, article one-c of this chapter;
(4) Divide the total regular levy tax revenues, thus increased
in subdivision (3) of this subsection, by the total weighted net
assessed value as calculated in subdivision (2) of this subsection
and multiply the resulting product by one hundred; the resulting
number is the Class I regular levy rate, stated as cents-per-one
hundred dollars of assessed value;
(5) The Class II rate is two times the Class I rate; Classes
III and IV, four times the Class I rate as calculated in the preceding subdivision.
(c) The governing body of a county or municipality may, after
conducting a public hearing, which may be held at the same time and
place as the annual budget hearing, increase the rate above the
reduced rate required in this section if any such increase is
deemed to be necessary by such governing body:
Provided, That in
no event shall the governing body of a county or municipality
increase the rate above the reduced rate required by subsection (b)
of this section for any single year in a manner which would cause
total property tax revenues accruing to the governing body of the
county or municipality, excepting additional revenue attributable
to assessed valuations of newly created properties not assessed in
the previous year's tax book for each class of property, to exceed
by more than ten percent those property tax revenues received by
the governing body of the county or municipality for the next
preceding year:
Provided, however, That this provision shall not
restrict the ability of a county or municipality to enact excess
levies as authorized under existing statutory or constitutional
provisions:
Provided further, That this provision does not
restrict the ability of a county or municipality to issue bonds and
enact sufficient levies to pay for such bonds pursuant to article
one, chapter thirteen of this code when such issuance has been
approved by an election administered pursuant to that article.
Notice of the public hearing and the meeting in which the levy rate shall be on the agenda shall be given at least seven days
before the date for each public hearing by the publication of a
notice in at least one newspaper of general circulation in such
county or municipality:
Provided, That a Class IV town or village
as defined in section two, article one, chapter eight of this code,
in lieu of the publication notice required by this subsection, may
post no less than four notices of each public hearing, which posted
notices shall contain the information required by the publication
notice and which shall be in available, visible locations including
the town hall. The notice shall be at least the size of one-eighth
page of a standard size newspaper or one-fourth page of a tabloid-
size newspaper and the headline in the advertisement shall be in a
type no smaller than twenty-four point. The publication notice
shall be placed outside that portion, if any, of the newspaper
reserved for legal notices and classified advertisements and shall
also be published as a Class II-O legal advertisement in accordance
with the provisions of article three, chapter fifty-nine of this
code. The publication area is the county. The notice shall be in
the following form and contain the following information, in
addition to such other information as the local governing body may
elect to include:
NOTICE OF PROPOSED TAX INCREASE.
The (name of the county or municipality) proposes to increase
property tax levies.
1. Appraisal/Assessment Increase: Total assessed value of
property, excluding additional assessments due to new or improved
property, exceeds last year's total assessed value of property by
..... percent.
2. Lowered Rate Necessary to Offset Increased Assessment: The
tax rate which would levy the same amount of property tax as last
year, when multiplied by the new total assessed value of property
with the exclusions mentioned above, would be $..... per $100 of
assessed value for Class I property, $..... per $100 of assessed
value for Class II property, $..... per $100 of assessed value for
Class III and $..... per $100 of assessed value for Class IV
property. These rates will be known as the "lowered tax rates".
3. Effective Rate Increase: The (name of the county or
municipality) proposes to adopt a tax rate of $..... per $100 of
assessed value for Class I property, $..... per $100 of assessed
value for Class II property, $..... per $100 of assessed value for
Class III property and $..... per $100 of assessed value for Class
IV property. The difference between the lowered tax rates and the
proposed rates would be $..... per $100, or ..... percent for Class
I; $..... per $100, or ..... percent for Class II; $..... per $100,
or ..... percent for Class III and $..... per $100, or .....
percent for Class IV. These differences will be known as the
"effective tax rate increases".
Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.
4. Revenue produced last year: $.....
5. Revenue projected under the effective rate increases:
$.....
6. Revenue projected from new property or improvements:
$.....
7. General areas in which new revenue is to be allocated: A
public hearing on the increases will be held on (date and time) at
(meeting place). A decision regarding the rate increase will be
made on (date and time) at (meeting place).
(d) All hearings are open to the public. The governing body
shall permit persons desiring to be heard an opportunity to present
oral testimony within such reasonable time limits as are determined
by the governing body.
(e) This section shall be effective as to any regular levy
rate imposed by the county commission or a municipality for taxes
due and payable on or after July 1, 1991. If any provision of this
section is held invalid,
such the invalidity
shall does not affect
other provisions or applications of this section which can be given
effect without the invalid provision or its application and to this
end the provisions of this section are declared to be severable.
§11-8-10. Levy estimate by county commission; certification to tax
commissioner and publication.
The county
court commission shall, at the session provided for in section nine of this article, ascertain the fiscal condition of
the county, and make an itemized statement setting forth:
(1) The amount due and the amount that will become due and
collectible from every source during the current fiscal year except
from the levy of taxes to be made for the year upon the county as
a whole and upon any district of the county for which the levies
are laid by the county
court commission;
(2) The interest, sinking fund and amortization requirements
for the current fiscal year of bonded indebtedness legally incurred
upon a vote of the people, as provided by law, prior to the
adoption of the Tax Limitation Amendment, owing by the county as a
whole and by any district:
Provided, that, for purposes of the
calculation of payments for any bonds for which a county receives
a credit payment from the United States of America, this
calculation shall include the debt service due on such bonds less
the amount of credit payment scheduled to be received by such
county;
(3) Other contractual indebtedness not bonded, legally
incurred prior to the adoption of the Tax Limitation Amendment,
owing by the county as a whole and such debts owing by any
district;
(4) All other expenditures to be paid out of the receipts for
the current fiscal year, with proper allowance for delinquent
taxes, exonerations and contingencies;
(5) The total amount necessary to be raised for each fund by
the levy of taxes for the current year;
(6) The proposed county levy in cents on each one hundred
dollars' assessed valuation of each class of property for the
county and its subdivisions;
(7) The proposed levy in each district for district funds, if
any, on each one hundred dollars' valuation of each class of
property;
(8) The separate and aggregate amounts of the real, personal
and public utility properties in each class in the county and in
each subdivision thereof.
A copy of the statement, duly certified by the clerk of the
court, shall be forwarded to the tax commissioner, and the clerk
shall publish the statement forthwith. The session shall then
stand adjourned until the third Tuesday in April, at which time it
shall reconvene.
§11-8-12. Levy estimate by board of education; certification and
publication.
Each board of education shall, at the session provided for in
section nine of this article, if the laying of a levy has been
authorized by the voters of the district under article nine,
chapter eighteen of the code, ascertain the condition of the fiscal
affairs of the district, and make a statement setting forth:
(1) The amount due, and the amount that will become due and collectible during the current fiscal year except from the levy of
taxes to be made for the year;
(2) The interest, sinking fund and amortization requirements
for the fiscal year of bonded indebtedness legally incurred upon a
vote of the people, as provided by law, by any school district
existing prior to May 22, 1933, prior to the adoption of the Tax
Limitation Amendment:
Provided, that, for purposes of the
calculation of payments for any bonds for which a board of
education receives a credit payment from the United States of
America, this calculation shall include the debt service due on
such bonds less the amount of credit payment scheduled to be
received by such board of education;
(3) Other contractual indebtedness not bonded, legally
incurred by any such school district existing prior to May 22,
1933, prior to the adoption of the Tax Limitation Amendment, owing
by such district;
(4) The amount to be levied for the permanent improvement
fund;
(5) The total of all other expenditures to be paid out of the
receipts for the current fiscal year, with proper allowance for
delinquent taxes, exonerations and contingencies;
(6) The amount of such total to be raised by the levy of taxes
for the current fiscal year;
(7) The proposed rate of levy in cents on each one hundred dollars' assessed valuation of each class of property;
(8) The separate and aggregate amounts of the assessed
valuation of real, personal, and public utility property within
each class.
The secretary of the board shall forward immediately a
certified copy of the statement to the tax commissioner and shall
publish the statement forthwith. The session shall then stand
adjourned until the third Tuesday in April, at which time it shall
reconvene.
§11-8-14. Levy estimate by municipality; certification to tax
commissioner and publication.
A municipal governing body shall, at the session provided for
in section nine, ascertain the fiscal condition of the corporation,
and make an itemized statement setting forth:
(1) The amount due and the amount that will become due and
collectible from every source during the current fiscal year except
from the levy of taxes to be made for the year;
(2) The interest, sinking fund and amortization requirements
for the fiscal year of bonded indebtedness, legally incurred upon
a vote of the people as provided by law, prior to the adoption of
the Tax Limitation Amendment:
Provided, that, for purposes of the
calculation of payments for any bonds for which a municipality
receives a credit payment from the United States of America, this
calculation shall include the debt service due on such bonds less the amount of credit payment scheduled to be received by such
municipality;
(3) Other contractual indebtedness, not bonded, legally
incurred prior to the adoption of the Tax Limitation Amendment,
owing by the municipality;
(4) All other expenditures to be paid out of the receipts of
the municipality for the current fiscal year with proper allowance
for delinquent taxes, exonerations, and contingencies;
(5) The total amount necessary to be raised by the levy of
taxes for the current fiscal year;
(6) The proposed rate of levy in cents on each one hundred
dollars' assessed valuation of each class of property; and
(7) The separate and aggregate assessed valuations of real,
personal and public utility property in each class in the
municipality.
The recording officer of the municipality shall forward
immediately a certified copy of the statement to the tax
commissioner, and shall publish the statement forthwith. The
session shall then stand adjourned until the third Tuesday in
April, at which time it shall reconvene."
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