H. B. 2931
(By Delegate Harrison)
[Introduced February 26, 1999; referred to the
Committee on Finance.]
A BILL to amend and reenact section ten, article one-c, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to valuation of
industrial property and natural resources property by tax
commissioner; penalties; methods; values sent to assessors
and qualification of land as managed timberland.
Be it enacted by the Legislature of West Virginia:
That section ten, article one-c, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 1C. FAIR AND EQUITABLE PROPERTY VALUATION.
§11-1C-10. Valuation of industrial property and natural
resources property by tax commissioner; penalties; methods;
values sent to assessors.
(a) As used in this section:
(1) "Industrial property" means real and personal property
integrated as a functioning unit intended for the assembling,
processing and manufacturing of finished or partially finished
products.
(2) "Natural resources property" means coal, oil, natural
gas, limestone, fireclay, dolomite, sandstone, shale, sand and
gravel, salt, lead, zinc, manganese, iron ore, radioactive
minerals, oil shale, managed timberland as defined in section two
of this article, and other minerals.
(b) All owners of industrial property and natural resources
property each year shall make a return to the state tax
commissioner and, if requested in writing by the assessor of the
county where situated, to
such the county assessor at a time and
in the form specified by the commissioner of all industrial or
natural resources property owned by them. The commissioner may
require any information to be filed which would be useful in
valuing the property covered in the return. Any penalties
provided for in this chapter or elsewhere in this code relating
to failure to list any property or to file any return or report
may be applied to any owner of property required to make a return
pursuant to this section.
(c) The state tax commissioner shall value all industrial
property in the state at its fair market value within three years of the approval date of the plan for industrial property required
in subsection (e) of this section. The commissioner shall
thereafter maintain accurate values for all
such industrial
property. The tax commissioner shall forward each industrial
property appraisal to the county assessor of the county in which
that property is located and the assessor shall multiply each
such appraisal by sixty percent and include the resulting
assessed value in the land book or the personal property book, as
appropriate for each tax year. The commissioner shall supply
support data that the assessor might need to evaluate the
appraisal.
(d) Within three years of the approval date of the plan
required for natural resources property required pursuant to
subsection (e) of this section, the state tax commissioner shall
determine the fair market value of all natural resources property
in the state. The commissioner shall thereafter maintain
accurate values for all
such natural resources property.
(1) In order to qualify for identification as managed
timberland for property tax purposes the owner
must annually
shall certify, in writing to the division of forestry, that the
property meets the definition of managed timberland as set forth
in this article and contracts to manage property according to a
plan that will maintain the property as managed timberland. In
addition, each owner's certification must state that forest management practices will be conducted in accordance with
approved practices from the publication "Best Management
Practices for Forestry". Property certified as managed
timberland shall be valued according to its use and productive
potential.
Once real property has been qualified as managed
timberland it remains qualified unless removed for cause or by
request of the property owner. Qualification may be removed for
cause only after notifying the property owner and providing an
opportunity for appeal or resolution. The tax commissioner shall
promulgate rules for certification as managed timberland.
(2) In the case of all other natural resources property, the
commissioner shall develop an inventory on a county by county
basis of all such property and may use any resources, including,
but not limited to, geological survey information; exploratory,
drilling, mining and other information supplied by natural
resources property owners; and maps and other information on file
with the state division of environmental protection and office of
miners' health, safety and training. Any information supplied by
natural resources owners or any proprietary or otherwise
privileged information supplied by the state division of
environmental protection and office of miner's health, safety and
training shall be kept confidential unless needed to defend an
appraisal challenged by a natural resources owner. Formulas for
natural resources valuation may contain differing variables based upon known geological or other common factors. The tax
commissioner shall forward each natural resources property
appraisal to the county assessor of the county in which that
property is located and the assessor shall multiply each
such
appraisal by sixty percent and include the resulting assessed
value in the land book or the personal property book, as
appropriate, for each tax year. The commissioner shall supply
support data that the assessor might need to explain or defend
the appraisal. The commissioner shall directly defend any
challenged appraisal when the assessed value of the property in
question exceeds two million dollars or an owner challenging an
appraisal holds or controls property situated in the same county
with an assessed value exceeding two million dollars. At least
every five years, the commissioner shall review current
technology for the recovery of natural resources property to
determine if valuation methodologies need to be adjusted to
reflect changes in value which result from development of new
recovery technologies.
(e) The tax commissioner shall develop a plan for the
valuation of industrial property and a plan for the valuation of
natural resources property. The plans shall include expected
costs and reimbursements, and shall be submitted to the property
valuation training and procedures commission on or before the
first day of January, one thousand nine hundred ninety-one, for its approval on or before the first day of July of
such that
year.
Such The plan shall be revised, resubmitted to the
commission and approved every three years thereafter.
(f) To perform the valuation duties under this section, the
state tax commissioner has the authority to contract with a
competent property appraisal firm or firms to assist with or to
conduct the valuation process as to any discernible species of
property statewide if the contract and the entity performing
such
the contract is specifically included in a plan required by
subsection (e) of this section or otherwise approved by the
commission. If the tax commissioner desires to contract for
valuation services only in one county or a group of counties, the
contract must be approved by the commission.
(g) The county assessor may accept the appraisal provided,
pursuant to this section, by the state tax commissioner:
Provided,
That if the county assessor fails to accept the
appraisal provided by the state tax commissioner, the county
assessor shall show just cause to the valuation commission for
the failure to accept such the appraisal and shall further
provide to the valuation commission a plan by which a different
appraisal will be conducted.
(h) The costs of appraising the industrial and natural
resources property within each county, and any costs of defending
same shall be paid by the state: Provided,
That the office of the state attorney general shall provide legal representation on
behalf of the tax commissioner or assessor, at no cost, in the
event the industrial and natural resources appraisal is
challenged in court.
(i) For purposes of revaluing managed timberland as defined
in section two of this article, any increase or decrease in
valuation by the commissioner does not become effective prior to
the first day of July, one thousand nine hundred ninety-one. The
property owner may request a hearing by the director of the
division of forestry, who may thereafter rescind the
disqualification or allow the property owner a reasonable period
of time in which to qualify the property. A property owner may
appeal a disqualification to the circuit court of the county in
which the property is located.
NOTE: The purpose of this bill is to provide perpetual
qualification of managed timberland unless qualification is
removed for cause or by request of the property owner.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.