HOUSE JOINT RESOLUTION NO. 109

(By Delegates Lane and Manchin)

           [Introduced February 14, 2014; referred to the

           Committee on the Judiciary then Finance.] 

Proposing an amendment to the Constitution of the State of West Virginia, 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 2014, which proposed amendment is that Article X be amended by adding thereto a new section, designated section one-d, to read as follows:

§1d. Exemption from ad valorem taxation of manufacturing inventory and equipment.

    After June 30, 2015, notwithstanding any other provision of the Constitution, tangible personal property purchased after that date, 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; provided, however, the purchase of such property shall be subject to a sales and use tax as the Legislature may be direct; provided further, that the rate of any such sales and use tax shall be no greater than any general sales and use tax; provided additionally that all such revenue derived shall be utilized to support public schools.

    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 "Manufacturing Inventory Amendment," and the purpose of the proposed amendment is summarized as follows: "To amend Article X of the State Constitution 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 permit the Legislature to exempt from ad valorem taxation tangible personal property directly used in commercial and industrial businesses, or components of those properties as the Legislature may designate.

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