WEST virginia legislature

2021 regular session

Committee Substitute

for

Senate Bill 554

By Senators Maynard and Karnes

[Originating in the Committee on Economic Development; reported on March 18, 2021]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-29-1, §11-29-2, §11-29-3, §11-29-4, and §11-29-5, all relating to creating the West Virginia Motorsports Entertainment Complex Investment Act; providing legislative findings; providing definitions; creating a tax exemption; and providing for an effective date.

Be it enacted by the Legislature of West Virginia:

Article 29. Motorsports Entertainment Complex Investment Act.

§11-29-1. Act created.

This article is hereby established and may be cited as the West Virginia Motorsports Entertainment Complex Investment Act.

§11-29-2. Findings.

The Legislature finds that motorsports is a popular spectator sport, the growth of which holds potential for significant economic impact by providing additional entertainment venues for West Virginia citizens and for creating tourist destinations. The state recognizes the importance of providing incentives through which large-scale investment in a motorsport entertainment complex would be attracted to the state.

§11-29-3. Definitions.

For purposes of this article:

“Company” means any corporation, partnership, limited liability company, or other business entity.

“Department” means the Department of Tax and Revenue.

“Motorsports entertainment complex” means a motorsports facility, and its ancillary grounds and facilities, that is designed to qualify as an official motor speedway or racetrack.

§11-29-4. Exemption from tax.

(a) A company currently operating, making application for, meeting the requirements of, or receiving written certification of qualification, as provided in subsection (b) of this section, is exempt from state and local sales tax on building materials, supplies, fixtures, and equipment for the construction, repair, or improvement of or that become a part of a motorsports entertainment complex.

(b) A company shall receive qualified certification by applying with the department. The director of the department shall approve the application provided the application is accompanied by a practical plan to make a capital investment on any motorsports entertainment complex in this state. Upon receiving written certification from the department, a company may use the exemption specified in subsection (a) of this section.

(c) Once a company has met the requirements of subsection (b) of this section, the department shall issue a sales tax exemption certificate to the company as evidence of the exemption. The exemption is effective upon receipt and shall remain effective until December 31 of the fifth full calendar year after its issuance. Once the exemption certificate is ineffective, the company must return the exemption certificate to the department and submit a report to the department of the actual expenditures made in West Virginia in connection with the investment. The company must designate a member or representative of the company to work with the department on reporting of the investment.

§11-29-5. Time effective.

Except where specified otherwise, this article takes effect upon approval by the Governor and applies to tax years beginning after 2021.

NOTE: The purpose of this bill is to provide tax relief to encourage investment in motorsports entertainment complexes.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.