H. B. 4314
(By Delegates White and Campbell)
(By Request of State Tax Division)
[Introduced February 3, 2010; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §11-1C-5 of the Code of West Virginia,
1931, as amended, relating to establishing the valuation of
motor vehicles and motorcycles for property tax assessment
purposes based on "clean load" values for motor vehicles,
"clean trade-in" values for motorcycles or alternative values.
Be it enacted by the Legislature of West Virginia:
That §11-1C-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 1C. FAIR AND EQUITABLE PROPERTY VALUATION.
§11-1C-5. Tax Commissioner powers and duties.
(a) In addition to the powers and duties of the Tax
Commissioner in other provisions of this article and this code, the
Tax Commissioner shall have the power and duty to:
(1) Perform such duties and exercise such powers as may be necessary to accomplish the purposes of this article;
(2) Determine the methods of valuation for both real and
personal property in accordance with the following:
(A) As to personal property, the Tax Commissioner shall
provide a method to appraise each major specie of personal property
in the state so that all such items of personal property are valued
in the same manner no matter where situated in the state, shall
transmit these methods to each county assessor who shall use these
methods to value the various species of personal property. The Tax
Commissioner shall periodically conduct such studies as are
necessary to determine that such methods are being followed. Such
method shall be in accordance with the provisions of article five
of this chapter: Provided, That notwithstanding any other
provision of this code to the contrary, the several county
assessors shall appraise motor vehicles as follows: The State Tax
Commissioner shall annually compile a schedule of automobile motor
vehicle values based upon the lowest "clean loan" values shown in
a nationally accepted used car guide for used car and truck values,
and the "clean trade-in" value for motorcycles shown in a
nationally accepted vehicle value guide, which said schedule shall
be furnished to each assessor and shall be used by the several
county assessors to determine the assessed value for all motor
vehicles in an amount equal to sixty percent of said lowest values.
If a nationally accepted guide does not include "clean loan" or "clean trade-in" values, the State Tax Commissioner shall use the
lowest value approximating "clean loan" or "clean trade-in" values.
In no case shall the "damaged car" value guideline or a similar
value guideline be adopted for the purpose of valuing an undamaged
vehicle.
(B) As to managed timberland as defined in section two of this
article, the Tax Commissioner shall provide a method to appraise
such property in the state so that all such property is valued in
the same manner no matter where it is situated in the state, which
shall be a valuation based on its use and productive potential as
managed timberland, which may be accorded special valuation as
forestlands as authorized by section fifty-three, article six of
the Constitution of West Virginia: Provided, That timberland that
does not qualify for identification as managed timberland shall be
valued at market value: Provided, however, That the Tax
Commissioner may not implement any rules or regulations in title
one hundred ten, which relate to valuation or classification of
timberland: Provided further, That on or before October 1, 1990,
the Tax Commissioner shall, in accordance with chapter twenty-nine-
a of this code, promulgate new rules relating to the valuation and
classification of timberland.
(C) As to farmland used, occupied and cultivated by an owner
or bona fide tenant, the Tax Commissioner shall provide a method to
appraise such property in the state so that all such property is valued in the same manner no matter where it is situated in the
state, which valuation shall be arrived at according to the fair
and reasonable value of the property for the purpose for which it
is actually used regardless of what the value of the property would
be if used for some other purpose, in accordance with section one,
article three of this chapter and as authorized by subsection B,
section one-b, article X of the Constitution of West Virginia.
(D) As to public utility property, the Tax Commissioner shall
prescribe appropriate methods for the appraisal of the various
types of property subject to taxation as public utilities and the
types of property which are to be included in the operating
property of a public utility and thereby not subject to taxation by
the county assessor. Only parcels or other property, or portions
thereof, which are an integral part of the public utility's
function as a utility shall be included as operating property and
assessed by the board of Public Works under provisions of article
six of this chapter;
(3) Evaluate the performance of each assessor based upon the
criteria established by the commission and each county's approved
plan and take appropriate measures to require any assessor who does
not meet these criteria or adequately carry out the provisions of
the plan to correct any deficiencies. Such evaluation shall
include the periodic review of the progress of each assessor in
conducting the appraisals required in sections seven and nine of this article and in following the approved valuation plan. If the
Tax Commissioner determines that an assessor has substantially
failed to perform the duties required by said sections, the Tax
Commissioner shall take all necessary steps, including the
appointment of one or more special assessors in accordance with the
provisions of section one, article three of this chapter, or
utilize such other authority as the commissioner Tax Commissioner
has over county assessors pursuant to other provisions of this code
as may be necessary to complete the tasks and duties imposed by
this article: Provided, That a writ of mandamus shall be the
appropriate remedy if the Tax Commissioner fails to perform his or
her statutory duty provided for in section five, article one of
this chapter.
(4) Submit to the Legislature, on or before February 15 of
each year, a preliminary statewide aggregate tax revenue projection
and other information which shall assist the Legislature in its
deliberations regarding county board of education levy rates
pursuant to section six-f, article eight of this chapter, which
information shall include any amount of reduction required by said
section six-f;
(5) Maintain the valuations each year by making or causing to
be made such surveys, examinations, audits and investigations of
the value of the several classes of property in each county which
should be listed and taxed under the several classifications; and
(6) Establish by uniform rules a procedure for the sale of
computer generated material and appraisal manuals. Any funds
received as a result of the sale of such reproductions shall be
deposited to the appropriate account from which the payment for
reproduction is made.
(b) The Tax Commissioner may adopt any regulation adopted
prior to January 1, 1990, pursuant to article one-a of this
chapter, which adoption shall not constitute an implementation of
the statewide mass reappraisal of property. Such adoption,
including context modifications made necessary by the enactment of
this article, shall occur on or before July 1, 1991, through
inclusion in the plan required by section ten of this article or
inclusion in the minute record of the valuation commission. Upon
the adoption of any such regulations, any modification or repeal of
such regulation shall be in accordance with the provisions of
article three, chapter twenty-nine-a of this code.
NOTE: The purpose of this bill is to ensure uniformity in the
valuation of used motor vehicles for assessment purposes by
requiring that they be valued at the "clean loan" and "clean trade-
in" value as established in a nationally accepted used car guide.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.