ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. J. R. 104
(By Mr. Speaker, Mr. Kiss, and Delegates Martin, Michael,
Mezzatesta, Ashley, Pino and Fleischauer)
[Adopted March 9, 1998]
Proposing an amendment to the Constitution of the State of West
Virginia, amending article ten thereof by adding thereto a new
section, designated section eight-a, relating to the authority
of the Legislature to define types of improvement projects and
to authorize the issuance by counties or municipalities of
bonds to be payable from revenues derived from increased real
or personal property taxes on such improvement projects in the
county or municipality upon approval by majority vote in the
county or counties and in the municipality where the proposed
project is located; numbering and designating the proposed
amendment; and providing a summarized statement of the purpose
of the 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 one thousand nine hundred ninety-eight, which proposed
amendment is that article ten thereof be amended by adding thereto
a new section, designated section eight-a, to read as follows:
ARTICLE X. TAXATION AND FINANCE.
§8a.Issuance of bonds payable from incremental increases in
property taxes:; voter approval required.
Notwithstanding any other provisions of this constitution to
the contrary, the Legislature by general law may define and
prescribe specific types of material improvements to real and
personal property which constitute economic development projects
and authorize the issuance by counties or municipalities of bonds
to finance the public portion of those economic development
projects. The Legislature may further determine the rights,
remedies and conditions governing the projects, which may be
located upon one or more parcels of real estate owned by one or
more public or private entities.
The economic development projects shall be entered, valued and
assessed on the land and personal property tax records of the
appropriate taxing authority. The entries shall be made separately from the property so improved and, if located in more than one
county or municipality, by separate entry for each applicable tax
rate. The separate assessment is in addition to, and not in lieu
of, the assessment for the property prior to the improvement. The
bonds are payable from the property taxes on the private portion of
the economic development projects.
No tax revenues of the county or municipality may be pledged
to, or used for, the payment of the bonds, except for the increased
tax revenues. The bonds issued shall be for a term not to exceed
40forty tax years, and may provide for the pledge of any other funds
as the owner of the improvements may by contract or otherwise be
required to pay. Upon payment in full of the bonds, the increased
tax revenues shall revert to the appropriate levying bodies. The
increased tax revenues from which the bonds may be paid shall not
include taxes from excess levies, bond levies or other special
levies.
No bonds may be issued unless the issuance of the bonds is
approved by a majority of the voters of the county or counties if
it is the issuing body, or if a municipality is the issuing body,
by a majority of the voters in both the municipality and the county
in which the municipality is located.
Resolved further, That in accordance with the provisions of article eleven, chapter three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, this proposed
amendment is hereby numbered "Amendment No. 1" and designated as
the "Local Option Economic Development Amendment", and the purpose
of the proposed amendment is summarized as follows: "To amend the
State Constitution to permit the Legislature to authorize the
financing of the public portion of economic development projects
through the issuance by counties or municipalities of bonds payable
from increases in real and personal property taxes, not including
taxes from excess levies, bond levies or other special levies, on
the private portion of the economic development projects. Upon
payment in full of the bonds, for a term not to exceed forty40 years,
the increased tax revenues revert to the appropriate levying
bodies. No tax revenues of the county or counties or municipality
may be pledged to, or used for, the payment of the bonds, except
for the increased tax revenues. No bonds may be issued unless the
issuance of the bonds is approved by a majority of the voters of
the county if it is the issuing body, or if a municipality is the
issuing body, by a majority of the voters in both the municipality
and the county in which the municipality is located."