Senate Bill No. 688
(By Senators Unger, McCabe and Hunter)
____________
[Introduced March 21, 2005; referred to the Committee
on Economic Development.]
____________
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-28-1, §11-28-2,
§11-28-3, §11-28-4, §11-28-5, §11-28-6, §11-28-7, §11-28-8,
§11-28-9, §11-28-10, §11-28-11, §11-28-12, §11-28-13,
§11-28-14, §11-28-15, §11-28-16, §11-28-17, §11-28-18,
§11-28-19, §11-28-20, §11-28-21, §11-28-22, §11-28-23,
§11-28-24, §11-28-25, §11-28-26, §11-28-27, §11-28-28 and
§11-28-29, all relating to establishing the First Class Cities
Economic Development District Act; and providing tax credits
to businesses which invest in renovating deteriorated property
in cities.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §11-28-1, §11-28-2,
§11-28-3, §11-28-4, §11-28-5, §11-28-6, §11-28-7, §11-28-8, §11-28-9, §11-28-10, §11-28-11, §11-28-12, §11-28-13, §11-28-14,
§11-28-15, §11-28-16, §11-28-17, §11-28-18, §11-28-19, §11-28-20,
§11-28-21, §11-28-22, §11-28-23, §11-28-24, §11-28-25, §11-28-26,
§11-28-27, §11-28-28 and §11-28-29, all to read as follows:
ARTICLE 28. FIRST CLASS CITIES ECONOMIC DEVELOPMENT DISTRICT ACT.
§11-28-1. Short title.
This article shall be known and may be cited as the "First
Class Cities Economic Development District Act."
t1-28-2. Legislative findings.
The Legislature finds and declares as follows:
(a) There currently exist in cities located within this state
areas of economic distress characterized by deteriorated property,
high unemployment, low investment of new capital, underutilized,
obsolete or abandoned industrial or commercial structures.
(b) These areas require coordinated efforts by private and
public entities to restore prosperity and enable the areas to make
significant contributions to the economic and social life of this
state.
(c) Long-term economic viability of these areas requires the
cooperative involvement of residents businesses, state and local
elected officials and community organizations. It is in the best
interest of the state to assist and encourage the creation of
economic development districts and to provide temporary relief from
certain taxes within the economic development districts to accomplish the purposes of this article.
§11-28-3. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business" means an association, partnership, Subchapter (S)
corporation, corporation, sole proprietorship, limited liability
company or limited liability partnership.
"Department" means the West Virginia Economic Development
Authority.
"Deteriorated property" means an area containing industrial or
commercial real property which is abandoned, vacant, undervalued,
underutilized or condemned or which contains economically
undesirable land use.
"Economic development district" means a clearly defined
geographic area comprised of deteriorated property located in a
city.
"Political subdivision" means a city or a school district.
"Qualified business" means a business that receives a
certificate under section six of this article for the taxable year.
"Qualified pass-through entity" means a partnership
association or Subchapter (S) corporation which is a qualified
business.
"Qualified political subdivision" means a political subdivision which has real property within its jurisdiction which
has been designated by the Department of Community and Economic
Development as an economic development district.
"Resident" means an individual who is domiciled in an economic
development district.
§11-28-4. Program.
(a)
Establishment.-- There is established within the
Department a program to be known as the First Class Cities Economic
Development District Program. The program shall encourage
development of deteriorated property by providing the tax
exemptions, deductions, abatements or credits provided by this
article to persons who own interests in qualified pass-through
entities and to residents of and qualified businesses located in
economic development districts.
(b)
Proposal.-- On or before the first day of July, two
thousand five, the Governor may, by executive order, propose the
designation of deteriorated property within cities as economic
development districts. The executive order shall specify the
period of time, not to extend beyond the thirty-first day of
December, two thousand eighteen, for which the tax exemptions,
deductions, abatements or credits provided by this article may be
granted. The Department shall immediately notify the owners of the
deteriorated property of said designation.
(c)
Application.-- Upon receipt of a request from the owners of deteriorated property notified under subsection (b) of this
section, a city may apply to the Department for approval of the
proposal to designate the deteriorated property as an economic
development district for the period specified under subsection (b)
of this section. The application shall be on a form provided by
the Department and shall include a copy of an ordinance, resolution
or other required action from the governing body of the city
consistent with the requirements of section five of this article.
(d)
Designation.-- If all political subdivisions within a
proposed economic development district submit timely, completed
applications, the Department shall approve the applications and
designate the property as an economic development district. The
state tax exemptions, deductions, abatements or credits set forth
in this article and the local tax exemptions, deductions,
abatements or credits set forth in this article shall take effect
on the date the property is designated an economic development
district. Qualified businesses and persons who own interests in
qualified pass-through entities within the economic development
district shall be entitled to the state tax exemptions, deductions,
abatements or credits set forth in this article and the local tax
exemptions, deductions, abatements or credits set forth in this
article, for the period for which the economic development district
has been designated.
(e)
Limitation.-- The aggregate amount of deteriorated property proposed by the Governor under subsection (b) of this
section, may not exceed eighty-five acres.
§11-28-5. Local ordinances and resolutions.
(a)
City action.-- In order for an application to be complete,
a city in which a proposed economic development district is to be
located must adopt and provide with its application a copy of an
ordinance, resolution or other required action from the governing
body of the city that exempts or provides the deductions,
abatements, or credits to qualified businesses upon designation of
the property as an economic development district. The ordinance,
resolution or other required action from the governing body of the
city shall suspend any current abatement of real property taxation
on the deteriorated property which will comprise the proposed
economic development district for the period for which the economic
development district will be designated. All appropriate
ordinances and resolutions shall be effective for the period
specified in the executive order and shall be binding and
nonrevocable on the city.
(b)
School district action.-- In addition to the completed
application and the ordinance, resolution or other required action
required by subsection (a) of this section, the city must submit
a copy of an ordinance, resolution or other required action from
the governing body of the school district in which the proposed
economic development district is located that approves the ordinance, resolution or other required action of the city
exempting or providing the deductions, abatements or credits. All
appropriate ordinances and resolutions shall be effective for the
period specified in the executive order and shall be binding and
nonrevocable on the political subdivisions.
(c)
Preemption.-- If deteriorated property is designated an
economic development district under this article, no political
subdivision with taxing jurisdiction over the deteriorated property
may impose additional taxes on or provide additional tax
exemptions, deductions, abatements or credits for the deteriorated
property for the period for which the deteriorated property has
been designated an economic development district.
§11-28-6. Qualified businesses.
(a)
Qualifications.-- In order to qualify each year for the
tax exemptions, deductions, abatements or credits provided under
this article, a business shall submit a statement to the Department
stating that the business owns or leases real property in an
economic development district and that the business actively
conducts a trade, profession or business on the real property. An
agent, broker or representative of a business is not engaged in the
active conduct of a trade, profession or business for the business.
The Department shall review the statement. Upon being satisfied
that the business is located and is in the active conduct of a
trade, profession or business within the economic development district, the Department shall, subject to subsection (b) of this
section, if applicable, grant the business a certificate. The
business shall obtain annual renewal of the certification from the
Department to continue to qualify for the tax exemptions,
deductions, abatements or credits provided under this article.
(b)
Relocation.-- If a business located in this state
relocates from outside an economic development district into an
economic development district, the business shall not receive the
exemptions, deductions, abatements or credits provided under this
article unless the business has entered into a lease agreement for
property located within the economic development district
consistent with all of the following:
(i) The net present value of the lease agreement is at least
fifty million dollars.
(ii) The lease agreement is for at least five hundred thousand
square feet of property.
(iii) The term of the lease agreement is at least equivalent
to the balance of the duration of the designation of the property
as an economic development district.
(iv) Aggregate payments under the lease agreement to support
new capital investment is at least equivalent to five percent of
the gross revenues of the business in the immediately preceding
calendar of the fiscal year.
(v) The property will be used for food distribution.
(vi) The property consists of at least eighty-five acres.
(vii) The property is publicly owned.
§11-28-7. Residency.
In order to qualify each year for a tax exemption, deduction,
abatement or credit under this article, an individual must be
domiciled and must reside in an economic development district for
a period of one hundred eighty-four consecutive days during each
taxable year beginning on the date the person first resides within
the economic development district.
§11-28-8. Reporting.
The Department and the Department of Revenue shall report
annually to the Legislature on the economic effects of this
article.
§11-28-9. State taxes.
(a)
General rule.-- A qualified business or a person who owns
an interest in a qualified pass-through entity shall receive the
exemptions, deductions, abatements or credits as provided in this
chapter for the duration of the economic development district
designation. Exemptions, deductions, abatements or credits shall
expire on the date of expiration of the economic development
district designation.
(b)
Limitation.-- A qualified business or a person who owns an
interest in a qualified pass-through entity may not apply an exemption from income or a credit under this chapter for any class
of income against any other classes of income or gain.
§11-28-10. Sales and services tax.
(a)
Exemption.-- Sales at retail of services or tangible
personal property, other than motor vehicles, to a qualified
business for the exclusive use, consumption and utilization of the
tangible personal property or service by the qualified business at
its facility located within an economic development district are
exempt from the sales and service tax imposed in chapter fifteen of
this code. No exemption shall be allowed for activities conducted
on the real property prior to designation of the real property as
an economic development district.
(b)
Construction contracts.-- For a construction contract
performed in an economic development district, the exemption
provided in subsection (a) of this section shall only apply to the
sale at retail of building machinery and equipment to a qualified
business, or to a construction contractor pursuant to a
construction contract with a qualified business, for the exclusive
use, consumption and utilization by the qualified business at its
facility located within the economic development district. For the
purposes of this subsection, building machinery and equipment shall
include distribution equipment purchased for the exclusive use,
consumption and utilization by the qualified business at its
facility located within the economic development district.
§11-28-11. Personal income tax.
(a)
General rule.-- For tax years that begin on or after the
first day of January of the tax years following the date an
economic development district is designated, a resident or person
who owns an interest in a qualified pass-through entity or who owns
a qualified business which is a sole proprietorship shall be
allowed an exemption for:
(1) Net income, except as provided in subdivisions (2) and (3)
of this section from the operation of the qualified business
received by the person which is attributable to business activity
conducted by the qualified business activity conducted by the
qualified business within an economic development district except
that any qualified business which operates both within and outside
this state, before computing its economic development district
exemption, shall first determine its West Virginia activity over
its activity everywhere by applying the three-factor apportionment
formula as set forth in the Department of Revenue personal income
tax rules applicable to income apportionment in connection with a
business, trade or profession carried on both within and outside
this state.
(2) Net gains or income, less net losses, derived from the
date, exchange or other disposition of tangible personal property
located within an economic development district, as determined in
accordance with accepted accounting principles and practices, received by the person which is attributable to business activity
conducted by the qualified business within the economic development
district. The exemption provided in this subdivision shall not
apply to the sale, exchange or other disposition of any stock or
goods, merchandise or inventory, or any operational assets unless
the transfer is in connection with the sale, exchange or other
disposition of all of the assets in complete liquidation of a
qualified business located in an economic development district.
The exemption provided in this subdivision shall apply to
intangible personal property employed in a trade, profession or
business within the economic development district by the qualified
business but only when transferred in connection with a sale,
exchange or other disposition of all of the assets in complete
liquidation of the qualified business. The exemption provided in
this subdivision shall be prorated based on the percentage of time,
based on calendar days, the property was held by the person during
the time period the economic development district was in effect in
relation to the total time the property was held.
(3) Net gains or income derived from or in the form of rents
from the rental of tangible personal property which is allocable to
an economic development district received by the person which is
attributable to business activity conducted by the qualified
business within the economic development district. For purposes of
calculating this exemption all of the following shall apply:
(i) Net rents derived from tangible personal property located
within the economic development district are allocable to the
economic development district.
(ii) If the tangible personal property was used both within
and outside the economic development district during the taxable
year, only the net rents attributable to use within the economic
development district is exempt. The net rents shall be multiplied
by a fraction, the numerator of which is the number of days the
property was used within the economic development district and the
denominator of which is the total days of use.
(b) Pass-through.--
(1) A partner or member of a qualified pass-through entity
shall be entitled to the exemptions under this section for the
partner's or member's share whether or not distributed, of the
income or gain received by the partnership or association for its
taxable year.
(2) A shareholder of a qualified pass-through entity shall be
entitled to the exemptions under this section for the shareholder's
pro rata share, whether or not distributed, of the income or gain
received by the Subchapter (S) corporation for its taxable year
ending within or with the shareholder's taxable year.
(c) Limitations.--
(1) No exemption shall be allowed for activities conducted on
the real property prior to designation of the real property as an economic development district.
(2) A partnership, association, Subchapter (S) corporation or
person may not carry back or carry forward any exemption under this
section that shall not exceed the tax liability for the person for
the tax year.
§11-28-12. Corporate net income tax.
(a)
Credits.-- For tax years that begin on or after the first
day of January of the tax years following the date an economic
development district is designated, a corporation which is a
qualified business may claim a credit against the tax imposed for
tax liability attributable to business activity conducted within
the economic development district in the taxable year. No credit
may be claimed for activities in the taxable year. No credit may
be claimed for activities conducted on the real property prior to
designation of the real property as an economic development
district. The business activity must be conducted directly by the
corporation in the economic development district in order for the
corporation to claim the tax credit.
(b)
Tax liability determinations.-- A corporation's tax
liability which is attributable to business activity conducted
within an economic development district shall be determined by
multiplying the corporation's taxable income which is attributable
to business activity conducted within the economic development
district by the rate imposed for the taxable year and shall be computed, construed, administered and enforced in conformity with
this chapter in accordance with all of the following:
(1) If the entire business of the corporation in this state is
transacted wholly within the economic development district, the
taxable income attributable to business activity within the
economic development district shall consist of the state taxable
income as determined under this chapter.
(2) If the entire business of the corporation in this state is
not transacted wholly within the economic development district, the
taxable income of the corporation within the economic development
district shall be determined upon the portion of the West Virginia
taxable income of the corporation attributable to business activity
conducted within the economic development district and apportioned
in accordance with subsection (c) of this section.
(c)
Income apportionment.-- The taxable income of a
corporation which is a qualified business shall be apportioned to
the economic development district by multiplying the West Virginia
taxable income by a fraction, the numerator of which is the
property factor plus the payroll factor plus the sales factor and
the denominator of which is three, in accordance with all of the
following:
(1) The property factor is a fraction, the numerator of which
is the average value of the corporation's real and tangible
personal property owned or rented and used within the economic development district during the tax period and the denominator of
which is the average value of all the corporation's real and
tangible personal property owned or rented and used in this state
during the tax period but shall not include the security interest
of the corporation as seller or lessor in personal property sold or
leased under a conditional sale, bailment lease, chattel mortgage
or other contract providing for the retention of a lien or title as
security for the sales price of the property.
(2) The payroll factor is a fraction, the numerator of which
is the total compensation paid by the corporation in the economic
development district during the tax period by the corporation for
compensation and the denominator of which is the total compensation
paid by the corporation in this state during the tax period.
Compensation is paid in the economic development district if:
(i) The employees's service is performed entirely within the
economic development district;
(ii) The employee's service is performed both within and
outside the economic development district, but the service
performed outside the economic development district is incidental
to the employee's service within the economic development district;
or
(iii) Some of the employee's service is performed in the
economic development district and the base of operations or, if
there is no base of operations, the place from which the employee's service is directed or controlled is located within the economic
development district, or the base of operations or the place from
which the employee's service is directed or controlled is not in
any location in which some part of the service is performed, but
the employee's residence is in the economic development district.
(3) The sales factor is a fraction, the numerator of which is
the total sales of the total sales of the corporation in the
economic development district during the tax period and the
denominator of which is the total sales of the corporation in this
state during the tax period. The following shall apply:
(i) Sales of tangible personal property are in the economic
development district if the property is delivered or shipped to a
purchaser within the economic development district regardless of
the F.O.B. point or other conditions of the sale.
(ii) Sales other than sales of tangible personal property are
in the economic development district if:
(A) The income-producing activity is performed within the
economic development district; or
(B) The income-producing activity is performed both within and
outside the economic development district and a greater proportion
of the income-producing activity is performed within the economic
development district than in any other location, based on costs of
performance.
(d)
Computation.-- A corporation shall compute its state taxable income in conformity with this chapter with no adjustments
or subtractions for economic development district taxable income.
(e)
Limitation on amount of credit.-- The credit allowed under
subsection (a) of this section shall not exceed the tax liability
of the corporation under this chapter for the tax year.
§11-28-13. Local taxes.
Every qualified political subdivision shall exempt, deduct,
abate or credit local taxes in accordance with ordinances and
resolutions adopted in accordance with section five of this
article. Violation of this section shall result in the revocation
of the economic development district designation.
§11-28-14. Local sales and services tax.
(a)
Exemption. -- A qualified political subdivision shall
exempt the sale at retail of services or tangible personal
property, other than motor vehicles, to a qualified business for
the exclusive use, consumption and utilization of the tangible
personal property or service by the qualified business at its
facility located within an economic development district from a
city or county tax on purchase price. No exemption may be granted
for sales occurring on the real property prior to designation of
the real property as an economic development district.
(b)
Construction contracts. -- For a construction contract
performed in an economic development district, the exemption
provided in subsection (a) of this section shall only apply to the sale at retail of building machinery and equipment to a qualified
business, or to a construction contractor pursuant to a
construction contract with a qualified business, for the exclusive
use, consumption and utilization by the qualified business at its
facility located within the economic development district.
(c)
Definitions. -- As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Building machinery and equipment" includes distribution
equipment purchased for the exclusive use, consumption and
utilization within an economic development district facility.
§11-28-15. Real property tax.
(a)
General rule. -- A qualified political subdivision shall,
by ordinance or resolution, abate one hundred percent of the real
property taxation which is not dedicated to a school district on
the assessed valuation of real property in an area designated as an
economic development district for the period the real property is
designated an economic development district beginning on or after
the first day of January of the tax years following the date the
economic development district is designated. The real property tax
abatement located in the economic development district,
irrespective of the business activity, if any, made of the realty
by its owner. No abatement may be provided to real property within
the economic development district prior to designation of the real property as part of an economic development district.
(b)
Annual real property report. -- By the thirty-first day
of January each calendar year, a qualified political subdivision
shall submit to the Department a report listing the address of each
real property designated part of an economic development district
and its owner of record.
(c)
Interest and penalties. -- If the Department or a
qualified political subdivision finds that a person claimed an
abatement of real property tax to which the person was not entitled
under this article, the person shall be liable for the abated taxes
and subject to the applicable interest and penalty provisions
provided by law.
(d)
Calculations for education subsidy for school districts.
-- In determining the market value of real property in each school
district, the Department of Revenue shall exclude any increase in
value above the base value prior to the effect of the abatement of
local taxes under this section to the extent and during the period
of time that real estate tax revenues attributable to such
increased value are not available to the school district for
general school district purposes.
§11-28-16. Transferability.
Any exemption, deduction, abatement or credit provided to any
person or qualified business under this article is nontransferable
and cannot be applied, used or assigned to any other person, business or tax account.
§11-28-17. Recapture.
(a)
General rule. -- If a qualified business located within
an economic development district has received an exemption,
deduction, abatement or credit under this article and subsequently
relocates outside of the economic development district during the
period the property is designated an economic development district,
the business shall refund to the state and the qualified political
subdivisions which granted the exemption, deduction abatement or
credit, in accordance with the following:
(1) If the qualified business relocates within three years
from the date of first locating in the economic development
district, seventy-five percent of all the exemptions, deductions,
abatements or credits attributed to the qualified business's
participation in the economic development district shall be
refunded to the state and the qualified political subdivisions.
(2) If a qualified business relocated within four to seven
years from the date of first locating in the economic development
district, fifty percent of all exemptions, deductions, abatements
or credits attributed to the qualified business's participation in
the economic development district shall be refunded to the state
and the qualified political subdivisions.
(3) If the qualified business was located within a facility
operated by a nonprofit organization for food distribution, no exemption, deduction, abatement or credit shall be refunded.
(b)
Waiver. -- The Department, in consultation with the
Department of Revenue and the qualified political subdivisions, may
waive or modify the recapture requirements under this section if
the Department determines that the qualified business relocation
was due to any of the following:
(1) Natural disaster.
(2) Unforeseen industry trends.
(3) Loss of a major supplier or market.
§11-28-18. Delinquent or deficient state or local taxes.
(a)
Persons. -- No person may claim or receive an exemption,
deduction, abatement or credit under this article unless the person
is in full compliance with all state and local tax laws, ordinances
and resolutions.
(b)
Qualified business. --
(1) No qualified business may claim or receive an exemption,
deduction, abatement or credit under this article unless the
qualified business is in full compliance with all state and local
tax laws, ordinances and resolutions.
(2) No qualified business may claim or receive an exemption,
deduction, abatement or credit under this article if any person or
business with a twenty percent or greater interest in the qualified
business is not in full compliance with all state and local tax
laws, ordinances and resolutions.
(c)
Later compliance and eligibility. -- A qualified business
or a person who owns an interest in a qualified pass-through entity
or who owns a qualified business which is a sole proprietorship
that is not eligible to claim an exemption, deduction, abatement or
credit due to noncompliance with any state or local tax law may
become eligible if the qualified business or person subsequently
comes into full compliance with all state and local tax laws to the
satisfaction of the Department of Revenue or the qualified
political subdivisions within the calendar year in which the
noncompliance first occurred. If full compliance is not attained
by the first day of February of the calendar year following the
calendar year during which noncompliance first occurred, then the
qualified business or person shall be precluded from claiming any
exemption, deduction, abatement or credit for that calendar year,
whether or not full compliance is achieved subsequently.
§11-28-19. Code compliance.
(a)
General rule. -- A qualified business or person shall be
precluded from claiming any exemption, deduction, abatement or
credit provided in this article if the qualified business or person
owns real property in an economic development district and the real
property is not in compliance with all applicable state and local
zoning, building and housing laws, ordinances or codes.
(b)
Opportunity to achieve compliance.-- A qualified business
or a person who owns an interest in a qualified pass-through entity or who owns a qualified business which is a sole proprietorship
that is not in compliance under subsection (a) of this section
shall have until the thirty-first day of December of the calendar
year following designation of the real property as an economic
development district to be in compliance in order to claim any
state exemptions, deductions, abatements or credits for that year.
If full compliance is not attained by the thirtieth-first day of
December of that calendar year, the qualified business or person
shall be precluded from claiming any exemption, deduction or credit
for that calendar year, whether or not compliance is achieved in a
subsequent calendar year. A qualified political subdivision may
extend the time period in which a qualified business or a person
who owns an interest in a qualified pass-through entity or who owns
a qualified business which is a sole proprietorship must come into
compliance with a local ordinance or building code for a period not
to exceed one year if the political subdivision determines that the
qualified business or person has made and will continue to make a
good faith effort to come into compliance and that an extension
will enable the person or qualified business to achieve full
compliance. A qualified political subdivision is required to
notify the Department of Revenue in writing of all qualified
businesses or persons not in compliance with this subsection within
thirty days following the end of each calendar year.
§11-28-20. Appeals.
A qualified business or a person who owns an interest in a
qualified pass-through entity or who owns a qualified business
which is a sole proprietorship shall be deemed to be in compliance
with state or local tax for purposes of this chapter if the
qualified business or person had made a timely administrative or
judicial appeal for a particular tax or has entered into and is in
compliance with an authorized deferred payment plan with the
Department of Revenue or the qualified political subdivision for
that particular tax.
§11-28-21. Certificates.
A business must file the statement required by section six of
this article in a manner prescribed by the Department by the
thirty-first day of December of each calendar year for which the
business claims an exemption, deduction, abatement or credit under
this article. No exemption, deduction, abatement or credit may be
claimed or received for that calendar year until the business has
been issued a certificate under section six of this article.
§11-28-22. Illegal activity.
Funds or other forms of consideration received by a person or
business from conducting any type of illegal activity or from
gaming shall not be eligible for any of the exemptions, deductions,
abatements and credits or any other benefits that are created under
this article.
§11-28-23. Rules.
(a)
Department.-- In order to administer this article, the
Department shall propose rules for legislative approval in
accordance with the provisions of article three, chapter
twenty-nine-a of this code.
(b)
Department of Revenue.-- In order to administer this
article, the Department of Revenue shall propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code.
§11-28-24. Compliance.
A person or qualified business eligible for an exemption,
deduction, abatement or credit under this article shall comply with
all reporting, filing and compliance requirements of this chapter
unless otherwise provided in this article.
§11-28-25. Penalties.
(a)
Civil penalty.--
(1) In addition to any penalties authorized by this chapter
for violations of that article, the Department of Revenue may
impose an additional administrative penalty not to exceed ten
thousand dollars for any act or violation of this article relating
to state and local taxes, including the filing of any false
statement, return or document.
(2) The Department may impose an administrative penalty not to
exceed ten thousand dollars for a violation of this article,
including the filing of any false statement, return or document.
(b)
Criminal penalty.-- In addition to any criminal penalty
under this chapter, a person or business that knowingly violates a
provision of this article commits a misdemeanor, and upon
conviction thereof imprisoned for not more than one year.
§11-28-26. Construction.
This article shall be interpreted to ensure that all
provisions relating to state and local tax exemptions, deductions,
abatements and credits are strictly construed in favor of the state
and qualified political subdivisions.
§11-28-27. Severability.
The provisions of this article are severable. If any
provisions of this article or its application to any person or
circumstance is held invalid, the invalidity shall not affect other
provisions or applications of this article which can be given
effect without the invalid provision or application.
§11-28-28. Applicability.
The provisions of this article shall be applied prospectively.
No person or business may claim any exemption, deduction, abatement
or credit until the person or business becomes qualified under this
article and, in the case of a business, receives certification from
the Department under section six of this article.
§11-28-29. Effective date.
This article shall take effect on the first day of July, two
thousand five.
NOTE:
The purpose of this bill is to
establish the First Class
Economic Development Act, giving tax credits to businesses which
invest in revitalizing deteriorated property in cities.
This article is new; therefore, strike-throughs and
underscoring have been omitted.