HOUSE JOINT RESOLUTION NO.102
(By Delegates Lane, Sobonya, C. Miller, J. Miller,
Blair, Cowles and Shott)
[Introduced January, 29 2010; referred to
the Committee on Constitutional Revision then Finance.]
Proposing an amendment to the Constitution of the State of West
Virginia, amending section one-b, Article X thereof, relating
to changing the homestead exemption, for citizens of this
state who are sixty-five years of age or older or are
permanently and totally disabled, from exempting the first
$20,000 of assessed valuation of any real property to
exempting the first fifty percent of the average sale of real
property in the county over the five years preceding the
assessment, and providing a summarized statement of the
purpose of such proposed amendment, and amending Article X by
adding thereto a new section, designated section one-d,
relating to authorizing the exemption from ad valorem taxation
of tangible personal property directly used in commercial and
industrial businesses; numbering and designating such proposed
amendment; and providing a summarized statement of the purpose
of such proposed amendment.
Resolved by the Legislature of West Virginia, two thirds of the members elected to each house agreeing thereto:
That the question of ratification or rejection of an amendment
to the Constitution of the State of West Virginia be submitted to
the voters of the state at the next general election to be held in
the year 2010, which proposed amendment is that section one-b,
Article X thereof be amended and reenacted, and that Article X be
amended by adding thereto a new section, designated section one-d,
to read as follows:
ARTICLE X. TAXATION AND FINANCE.
§1b. Property tax limitation and homestead exemption amendment of
1982.
Ad valorem property taxation shall be in accordance with this
section and other applicable provisions of this article not
inconsistent with this section.
Subsection A -- Value; Rate of Assessment; Exceptions
Notwithstanding any other provisions of this Constitution and
except as otherwise provided in this section, all property subject
to ad valorem taxation shall be assessed at sixty percent of its
value, as directed to be ascertained in this section, except that
the Legislature may from time to time, by general law agreed to by
two thirds of the members elected to each house, establish a higher
percentage for the purposes of this paragraph, which percentage
shall be uniform as to all classes of property defined in section
one of this article, but not more than one hundred percent of such value.
Notwithstanding the foregoing, for July 1, 1982, and the first
day of July of each year thereafter until the values may be fixed
as a result of the first statewide reappraisal hereinafter
required, assessments shall be made under the provisions of current
statutory law, which is hereby validated for such purpose until and
unless amended by the Legislature. Assessment and taxation in
accord with this section shall be deemed to be equal and uniform
for all purposes.
Subsection B -- Determination of Value
The Legislature shall provide by general law for periodic
statewide reappraisal of all property, which reappraisal shall be
related for all property to a specified base year which, as to each
such reappraisal, shall be uniform for each appraisal for all
classes of property and all counties. In such law, the Legislature
shall provide for consideration of: (1) Trends in market values
over a fixed period of years prior to the base year; (2) the
location of the property; and (3) such other factors and methods as
it may determine:
Provided, That with respect to reappraisal of
all property upon the base year of 1980, such reappraisals are
deemed to be valid and in compliance with this section:
Provided,
however, That with respect to farm property, as defined from time
to time by the Legislature by general law, the determination of
value shall be according to its fair and reasonable value for farming purposes, as may be defined by general law.
The results of each statewide appraisal shall upon completion
be certified and published and errors therein may be corrected, all
as provided by general law. The first such statewide appraisal
shall be completed, certified and published on or before March 31,
1985, for use when directed by the Legislature.
The Legislature shall further prescribe by general law the
manner in which each statewide reappraisal shall be employed to
establish the value of the various separately assessed parcels or
interests in parcels of real property and various items of personal
property subject to ad valorem property taxation, the methods by
which increases and reductions in value subsequent to the base year
of each statewide reappraisal shall be ascertained, and require the
enforcement thereof.
Subsection C -- General Homestead Exemption
Notwithstanding any other provisions of this Constitution to
the contrary, the
greater of the first
twenty thousand dollars
fifty percent of the average home sale price in a county over the
five years preceding the assessment
or twenty thousand dollars of
assessed valuation of any real property, or of personal property in
the form of a mobile home, used exclusively for residential
purposes and occupied by the owner or one of the owners thereof as
his residence who is a citizen of this state and who is sixty-five
years of age or older or is permanently and totally disabled as that term may be defined by the Legislature, shall be exempt from
ad valorem property taxation, subject to such requirements,
limitations and conditions as shall be prescribed by general law.
Notwithstanding any other provision of this Constitution to
the contrary, the Legislature shall have the authority to provide
by general law for an exemption from ad valorem property taxation
in an amount not to exceed the greater of the first twenty thousand
dollars fifty percent of the average home sale price in a county
over the five years preceding the assessment or twenty thousand
dollars of value of any real property, or of personal property in
the form of a mobile home, used exclusively for residential
purposes and occupied by the owner or one of the owners thereof as
his or her residence who is a citizen of this state, and who is
under sixty-five years of age and not totally and permanently
disabled: Provided, That upon enactment of such general law, this
exemption shall only apply to such property in any county in which
the property was appraised at its value as of January 1, 1980, or
thereafter, as determined by the Legislature, and this exemption
shall be phased in over such period of time not to exceed five
years from the date such property was so appraised, or such longer
time as the Legislature may determine by general law: Provided,
however, That in no event shall any one person and his or her
spouse, or one homestead be entitled to more than one exemption
under these provisions: Provided further, That these provisions are subject to such requirements, limitations and conditions as
shall be prescribed by general law.
The Legislature shall have the authority to provide by general
law for property tax relief to citizens of this state who are
tenants of residential or farm property.
Subsection D -- Additional Limitations on Value
With respect to the first statewide reappraisal, pursuant to
this section, the resulting increase in value in each and every
parcel of land or interest therein and various items of personal
property subject to ad valorem property taxation over and above the
previously assessed value shall be allocated over a period of ten
years in equal amounts annually.
The Legislature may by general law also provide for the
phasing in of any subsequent statewide reappraisal of property.
Subsection E -- Levies for Free Schools
In equalizing the support of free schools provided by state
and local taxes, the Legislature may require that the local school
districts levy all or any portion of the maximum levies allowed
under section one of this article which has been allocated to such
local school districts.
Within the limits of the maximum levies permitted for excess
levies for schools or better schools in sections one and ten of
this article, the Legislature may, in lieu of the exercise of such
powers by the local school districts as heretofore provided, submit to the voters, by general law, a statewide excess levy, and if it
be approved by the required number of voters, impose such levy,
subject however to all the limitations and requirements for the
approval of such levies as in the case of a district levy. The law
submitting the question to the voters shall provide, upon approval
of the levy by the voters, for the assumption of the obligation of
any local excess levies for schools then in force theretofore
authorized by the voters of a local taxing unit to the extent of
such excess levies imposed by the state and so as to avoid double
taxation of those local districts. The Legislature may also by
general law reserve to the school districts such portions of the
power to lay authorized excess levies as it may deem appropriate to
enable local school districts to provide educational services which
are not required to be furnished or supported by the state. If a
statewide excess levy for the support of free schools is approved
by the required majority, the revenue from such a statewide excess
levy shall be deposited in the State Treasury and be allocated
first for the local obligations assumed and thereafter for such
part of the state effort to support free schools, by appropriation
or as the law submitting the levy to the voters shall require, as
the case may be.
The defeat of any such proposed statewide excess levy for
school purposes shall not in any way abrogate or impair any local
existing excess levy for such purpose nor prevent the adoption of any future local excess levy for such purpose.
Subsection F -- Implementation
In the event of any inconsistency between any of the
provisions of this section and other provisions of this
Constitution, the provisions of this section shall prevail. The
Legislature shall have plenary power to provide by general law for
the equitable application of this article and, as to taxes to be
assessed prior to the first statewide reappraisal, to make such
laws retroactive to July 1, 1982, or thereafter.
§1d. Exemption from ad valorem taxation of manufacturing inventory
and equipment.
Notwithstanding any other provision of the Constitution,
tangible personal property purchased after June 30 of the year next
succeeding the ratification and which property is directly used in
commercial and industrial businesses, or, such components thereof
as the Legislature may in its discretion designate, shall be exempt
from ad valorem taxation.
Resolved further, That in accordance with the provisions of
article eleven, chapter three of the Code of West Virginia, 1931,
as amended, such proposed amendment is hereby numbered "Amendment
No. 1" and designated as the "Homestead Exemption Increase and
Manufacturing Inventory Amendment," and the purpose of the proposed
amendment is summarized as follows: "To amend Article X of the
State Constitution to change the homestead exemption, for citizens of this state and who are sixty-five years of age or older or are
permanently and totally disabled, from exempting the first $20,000
of assessed valuation of any real property to exempting an amount
equal to the first fifty percent of the average sale of real
property in the county over the five years preceding the
assessment, and to permit the Legislature to exempt from ad valorem
taxation tangible personal property directly used in commercial and
industrial businesses, or such components thereof as the
Legislature may in its discretion designate."
NOTE: The purpose of this Resolution is to change the
homestead exemption for citizens of this state and who are
sixty-five years of age or older or are permanently and totally
disabled, from exempting the first $20,000 of assessed valuation of
any real property to exempting an amount equal to the first fifty
percent of the average sale of real property in that county over
the five years preceding the assessment, and to permit the
Legislature to exempt from ad valorem taxation tangible personal
property directly used in commercial and industrial businesses, or
such components thereof as the Legislature may in its discretion
designate.
Strike-throughs indicate language that would be stricken from
the present Constitution, and underscoring indicates new language
that would be added.