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Introduced Version Senate Bill 68 History

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Key: Green = existing Code. Red = new code to be enacted


Senate Bill No. 68

(By Senators Jackson, Craigo and Plymale)

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[Introduced January 9, 2002; referred to the Committee

on the Judiciary; and then to the Committee on Finance.]

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A BILL to amend article five, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section forty-four; and to amend and reenact section twelve, article nine-a of said chapter, all relating to limitations on contracts affecting property taxes.
Be it enacted by the Legislature of West Virginia: That article five, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section forty-four; and that section twelve, article nine-a of said chapter be amended and reenacted, all to read as follows: ARTICLE 5. COUNTY BOARD OF EDUCATION.

§18-5-44. Limitations on contracts effecting property taxes.
(a) No agency of government may enter into any contract, agreement or other arrangement with any person, firm or corporation which would have the effect of allowing development of public property for the direct or indirect benefit of any person, firm or corporation if the contract, agreement or other arrangement would cause the reduction, elimination or avoidance of property taxes.
(b) The provisions of subsection (a) of this section do not apply where the person, firm or corporation enters into a contract, agreement or other arrangement with a county school board for the annual payment or contribution in lieu of taxes in the total amount of the property taxes which have been eliminated, reduced or avoided.
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.
§18-9A-12. County basic foundation; total basic state aid allowance.

(a) The basic foundation program for each county for the fiscal year shall be the sum of the amounts computed in accordance with the provisions of sections four, five, six, seven, eight, nine and ten of this article. On the first working day of July in each year, the state board shall determine the basic foundation program for each county for that fiscal year. Data used in the computations relating to net and adjusted enrollment, and the number of professional educators, shall be for the second month of the prior school term. Transportation expenditures used in these computations shall be for the most recent year in which data are available. The allocated state aid share of the county's basic foundation program shall be the difference between the cost of its basic foundation program and the county's local share as determined in section eleven of this article except as provided in subsection (b) of this section.
(b) The allocated state aid share shall be adjusted in the following circumstances in the following manner: Provided, That prior to such adjustment, the state tax commissioner shall provide the state board, by the fifteenth day of January of each year, a certified listing of those counties in which such adjustment shall be made pursuant to this subsection, together with the amount of revenue which will not be available to each county board in the ensuing fiscal year as a result of the circumstance:
(1) In those instances where the local share as computed under section eleven of this article is not reflective of local funds available because the county is under a final court order to refund or credit property taxes paid in prior years, the allocated state aid share shall be the county's basic foundation program, minus the local share as computed under section eleven of this article, plus the amount of property tax the county is unable to collect or must refund due to the final court order: Provided, That said adjustment shall not be made or shall only be made proportionately when the Legislature fails to fund or funds only in part the public school basic foundation support plan state share at a level sufficient to cover the reduction in state share: Provided, however, That nothing herein provided shall be construed to require or mandate any level of funding by the Legislature.
(2) In those instances where the local share as computed under section eleven of this article is not reflective of local funds available because the county is collecting tax based upon an assessed value which is less than that determined by the tax commissioner in the most recent published survey of property valuations in the state due to an error in the published survey, which error is certified to by the tax commissioner, the allocated state aid share shall be the county's basic foundation program, minus the local share as computed under section eleven of this article, plus the amount of property tax the county is unable to collect based on differences in the assessed valuation between those in the most recent published survey of valuation and the corrected assessed value actually levied upon by the county: Provided, That said adjustment shall not be made or shall only be made proportionately when the Legislature fails to fund or funds only in part the public school basic foundation support plan state share at a level sufficient to cover the reduction in state share: Provided, however, That nothing herein provided shall be construed to require or mandate any level of funding by the Legislature.
(3) In instances where a county is unable to collect property taxes from a taxpayer during the pendency of any court proceeding, the allocated state aid share shall be the county's basic foundation program minus the local share as computed under section eleven of this article, plus the amount the county is unable to collect as a result of the pending court proceedings as certified by the tax commissioner: Provided, That the county is required to reimburse the amount of allocated state aid share attributable to the amount of property tax it later receives upon completion of court proceedings, which shall be paid into the general revenue fund of the state: Provided, however, That said adjustment shall not be made or shall only be made proportionately when the Legislature fails to fund or funds only in part the public school basic foundation support plan state share at a level sufficient to cover the reduction in state share: Provided further, That nothing herein provided shall be construed to require or mandate any level of funding by the Legislature.
(c) The allocated state aid share shall be adjusted in any county receiving payments or contributions in lieu of property taxes. In instances where a county or county board of education receives payments or contributions in lieu of property taxes, the allocated state aid share shall be the county's basic foundation program minus the local share as computed under section eleven of this article, plus any amounts added pursuant to subsection (b) of this section minus the payments or contributions in lieu of property taxes which are distributed by the sheriff to the county board of education or are received in any manner by the county board of education. In determining the amount of
such the contribution or payment in lieu of taxes, each county commission or county board of education shall provide to the state tax commissioner, by the first day of January of each year, the total amount of such the payments or contributions paid to the county or county board of education and the proportion of the total amount that has been or will be distributed to the county board of education. The state tax commissioner then shall provide the state board, by the fifteenth day of January of each year, a certified listing of those counties in which an adjustment pursuant to this section shall be made, together with the amount of revenue which will be available to each county board in the ensuing fiscal year as a result of contribution or payment in lieu of taxes.
(d) Total basic state aid to the county shall be the computed state share of basic foundation support. After such computation is completed, the state board shall immediately certify to each county board the amount of state aid allocated to the county for that fiscal year, subject to any qualifying provisions of this article.


NOTE: The purpose of this bill is to provide for limitations on contracts effecting property taxes. The bill prohibits any agency of government from entering into a contract which would have the effect of allowing development of public property for the direct or indirect benefit of any person if the contract would cause the reduction or elimination of property taxes. However, the bill authorizes the contract where the person agrees to annually pay the school board a payment in lieu of taxes in the total amount of the property taxes which have been eliminated or reduced. Furthermore, the bill provides that the payment to the county board is deducted from the county's basic foundation program.

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

§18-5-44 is new; therefore, strike-throughs and underscoring have been omitted.

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