HOUSE JOINT RESOLUTION NO. 4
(By Delegates Blair, J. Miller, Duke, Border, Canterbury, Ellem,
Azinger, Evans, Romine, Anderson and Rowan)
[Introduced January 13, 2010; referred to the Committee on
Constitutional Revision then Finance.]
Proposing an amendment to the Constitution of the State of West
Virginia, amending sections one-b and seven, article ten
thereof, all relating to taxation; providing for the limiting
of the assessed valuation of and the levy rate upon 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, who is 65 years of
age or older or is permanently and totally disabled and who is
defined as a low income person; and limiting the amount an
annual tax increase on 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; 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 sections one-b and
seven, article ten thereof be amended 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 60% 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 100% of such value.
Notwithstanding the foregoing, for July 1, 1982, and July 1 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.
(1) Notwithstanding any other provisions of this Constitution
to the contrary, the first $20,000.00 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
or her residence who is
a citizen of this state and who is 65 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.
(2) 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 first $20,000.00 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 65 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 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.
(3) 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 -- Limitation on assessed value and levy
rate upon certain homestead exemption property.
Notwithstanding any other provision of this Constitution to
the contrary, for property tax years that begin on or after January
1, 2010, the assessed valuation of and the tax levy rate upon
property eligible for the homestead exemption provided in
subdivision (1), subsection (c) of this section, which is owned by
a low income person may not exceed the assessed valuation of, and
the tax levy rate imposed upon, the property for the base tax year,
subject to such requirements, limitations and conditions as may be
prescribed by general law.
Improvements or additions to property made after the base tax
year are exempt from the provisions of this subsection.
For purposes of this subsection:
"Base tax year" means the first tax year after the December
31, 2009 in which the property is eligible for the homestead
exemption provided in subdivision (1), subsection (c) of this
section as a result of its ownership by the taxpayer entitled to
the relief provided in this subsection; and
"Low income person" means a person whose federal adjusted
gross income for the year in which the property was assessed is
400% or less of the federal poverty guideline for the year in which
property was assessed, based upon the number of individuals in the
family unit residing in the homestead, as determined annually by the United States Secretary of Health and Human Services.
Subsection D E -- 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 10
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 F -- 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 G -- 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.
§7. Duties of county authorities in assessing taxes.
(1) County authorities shall never assess taxes, in any one
year, the aggregate of which shall exceed $0.95 per $100.00'
valuation, except for the support of free schools; payment of
indebtedness existing at the time of the adoption of this
Constitution; and for the payment of any indebtedness with the
interest thereon, created under the succeeding section, unless such
assessment, with all questions involving the increase of such
aggregate, shall have been submitted to the vote of the people of
the county, and have received three-fifths of all the votes cast
for and against it.
(2) Notwithstanding any other provisions of this Constitution
to the contrary, tax imposed on 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, may
not be increased by more than 10% of the tax imposed on the
property for the previous year: Provided, That in the following
instances the property may be subject to a tax increase of greater than 10%:
(a) An ownership change or sale of the property, excluding any
ownership changes to a surviving spouse under a right of
survivorship;
(b) A newly constructed property;
(c) An existing property with additions or improvements
completed since the previous tax year which significantly increase
the appraised value; or
(d) A recent discovery by county officials of a piece of
property with significant improvements, being taxed at a lower rate
either by mistake, misrepresentation or otherwise.
The provisions of this subsection are subject to such
requirements, limitations and conditions as may be prescribed by
general law.
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 "Property Tax Assessment Homestead
Limitation Amendment," and the purpose of the proposed amendment is
summarized as follows: "To provide for the limiting of the
assessed valuation of real property and personal property in the
form of a mobile home, used exclusively for residential purposes
and occupied as a residence by a resident owner citizen who is over
the age of 65 or who is permanently or totally disabled and who is defined as a low income person."
NOTE: The purpose of this resolution is to propose an
amendment to the State Constitution that would provide for the
limiting of the assessed valuation of, and the tax levy rate upon,
real property and personal property in the form of a mobile home,
used exclusively for residential purposes and occupied as a
residence by a resident owner citizen who is over the age of 65 or
who is permanently or totally disabled
(property subject to the
current homestead exemption)and owned by a person whose income is
less than 400% of the federal poverty level
, to not exceed the
assessed valuation and levy rate upon the property in the year the
property became eligible for the homestead exemption, and to
establish a 10% maximum tax increase on the aforementioned property
per year.
Strike-throughs indicate language that would be stricken from
the present Constitution, and underscoring indicates new language
that would be added.