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Introduced Version House Bill 2096 History

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H. B. 2096

 

         (By Delegate Guthrie)

         [Introduced January 12, 2011; referred to the

         Committee on Political Subdivisions then the Judiciary.]

 

 

 

 

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §5B-2H-1, §5B-2H-2, §5B-2H-3, §5B-2H-4, §5B-2H-5, §5B-2H-6 and §5B-2H-7; to amend and reenact §8-13-6 of said code; to amend said code by adding thereto a new article, designated §11-6L-1, §11-6L-2 and §11-6L-3; and to amend said code by adding thereto a new section, designated §11-21-12j, all relating to arts, entertainment and enterprise districts, definitions; scope; application by political subdivisions to designate an arts, entertainment and enterprise district; designation by the Secretary of Commerce of an arts, entertainment and enterprise district; expansion; tax status; rules to be promulgated by the Secretary of Commerce; exemption from admission or amusement tax; property tax credit allowed for buildings located within an arts, entertainment and enterprise district; and allowing an additional modification reducing federal adjusted gross income for any income derived within an arts, entertainment and enterprise district by a qualifying residing artist.

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 §5B-2H-1, §5B-2H-2, §5B-2H-3, §5B-2H-4, §5B-2H-5, §5B-2H-6 and §5B-2H-7; to amend and reenact §8-13-6 of said code; to amend said code by adding thereto a new article, designated §11-6L-1, §11-6L-2 and §11-6L-3; and to amend said code by adding thereto a new section, designated §11-21-12j, all to read as follows:

CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.

ARTICLE 2H. ARTS, ENTERTAINMENT AND ENTERPRISE DISTRICTS.

§5B-2H-1. Definitions.

    (a) In this article the following words have the meanings indicated.

    (b) “Artistic work” means an original and creative work that:

    (1) Is created, written, composed or executed; and

    (2) Falls into one of the following categories:

    (A) A book or other writing;

    (B) A play or performance of a play;

    (C) A musical composition or the performance of a musical composition;

    (D) A painting or other picture;

    (E) A sculpture;

    (F) Traditional or fine crafts;

    (G) The creation of a film or the acting within a film;

    (H) The creation of a dance or the performance of a dance;

    (I) The creation of original jewelry, clothing or clothing design;

    (J) The creation of original technology design or advancement; or

    (K) Any other product generated as a result of work listed in paragraphs (A) through (J) of this subdivision.

    (c) “Arts, entertainment and enterprise district” means a developed district of public and private uses that:

    (1) Is distinguished by physical, technology and cultural resources that play a vital role in the life and development of the community and contribute to the public through interpretive, commercial, education and recreational uses; and

    (2) Ranges in size from a portion of a political subdivision to a regional district with a special coherence.

    (d) “Arts, entertainment and enterprise” means a for-profit or not-for-profit entity dedicated to visual, performing arts and technology.

    (e) “Political subdivision” means a county or municipal corporation.

    (f) “Qualifying residing artist or entrepreneur” means an individual who:

    (1) Owns or rents residential real property in the county where the arts, entertainment and enterprise district is located;

    (2) Conducts a business in the art, entertainment and enterprise district; and

    (3) Derives income from the sale or performance within the art, entertainment and enterprise district of an artistic or technology for commercial use work that the individual created, wrote, composed or executed, either alone or with others in the arts, entertainment and enterprise district.

§5B-2H-2. Scope.

    This article does not apply to tailoring services, clothing alteration or jewelry repair.

§5B-2H-3. Application.

    (a) The following political subdivisions may apply to the Secretary of Commerce to designate an arts, entertainment and enterprise district:

    (1) A political subdivision for an area within that political subdivision;

    (2) With the prior consent of the municipal corporation, county, on its own behalf or on behalf of a municipal corporation, for an area in the municipal corporation; or

    (3) Two or more political subdivisions jointly for an area astride their common boundaries.

    (b) The application shall:

    (1) Be in the form and manner and contain the information that the Secretary of Commerce requires by rule;

    (2) Contain sufficient information to allow the Secretary of Commerce to determine if the proposed district qualifies under subsection (c), section one of this article and subsection (a), section four of this article; and

    (3) Be submitted for a political subdivision by its chief elected officer or, if none, its governing body.

§5B-2H-4. Designation.

    (a)(1) Within sixty days after a submission date, the Secretary of Commerce may designate one or more arts, entertainment and enterprise districts from among the areas in the applications timely submitted.

    (2) A county may not receive more than one arts, entertainment and enterprise district designation in a calendar year.

    (b) The designation of the Secretary of Commerce is final.

    (c) At any time, a political subdivision may reapply to the Secretary of Commerce to designate as an arts, entertainment and enterprise district an area that is not so designated.

§5B-2H-5. Expansion.

    A political subdivision may apply to the Secretary of Commerce to expand an existing arts, entertainment and enterprise district in the same manner as the political subdivision would apply to designate a new arts, entertainment and enterprise district. State funds shall be made available to designated political subdivisions for recruitment to designated arts, entertainment and enterprise districts from within and outside of the state.

§5B-2H-6. Tax status.

    (a) In an arts, entertainment and enterprise district:

    (1) Each qualifying artist is eligible for the income tax reduction modification under section twelve-i, article twenty-one, chapter eleven of this code;

    (2) The property tax credit under article six-j, chapter eleven of this code applies; and

    (3) The exemption from the admissions or amusement tax under section six, article thirteen, chapter eight of this code applies.

    (b)(1) On or before July 1 preceding the effective date of its establishment, the Secretary of Commerce shall notify the Tax Commissioner that an arts, entertainment and enterprise district is established.

    (2) The reduction under section twelve-i, article twenty-one, chapter eleven of this code applies to each taxable year beginning after December 31 of the year in which the Secretary of Commerce provides the notice required by subdivision (1) of this subsection.

    (c) Private and trust owned buildings situated in arts, entertainment and enterprise districts shall be entitled to low-interest loans and grants when plans are presented to municipalities or political subdivisions for conversion of buildings to meet residential and retail use within two years of the district designation, as provided in subsection (b) of this section. These plans may include, but not be limited to: affordable condominiums, rental units and retail space. Private and trust owned building owners failing to submit such plans shall be taxed at the highest possible property tax rate available to a municipality or political subdivision.

§5B-2H-7. Rules.

    The Secretary of Commerce shall promulgate rules pursuant to the provisions of article three, chapter twenty-nine-a of this code, pertaining to application procedures and criteria to designate arts, entertainment and enterprise districts.

CHAPTER 8. MUNICIPAL CORPORATIONS.

ARTICLE 13. TAXATION AND FINANCE.

§8-13-6. Amusement tax.

    (a) Every municipality shall have has plenary power and authority to levy and collect an admission or amusement tax upon any public amusement or entertainment conducted within the corporate limits thereof for private profit or gain. The tax shall be levied upon the purchaser and added to and collected by the seller with the price of admission, or other charge for the amusement or entertainment. The tax shall not exceed two percent of the admission price or charge, but a tax of one cent may be levied and collected in any case.

    (b) Any ordinance imposing such the tax shall contain reasonable rules and regulations governing the collection thereof by the seller and the method of his or her payment and accounting therefor to the municipality.

    (c) A municipality may exempt from the admission or amusement tax gross receipts from any admissions or amusement charge levied by an arts, entertainment and enterprise or qualifying residing artist in an arts, entertainment and enterprise district, as provided in article two-h, chapter five-b of this code.

CHAPTER 11. TAXATION.

ARTICLE 6L. ARTS, ENTERTAINMENT AND ENTERPRISE DISTRICT TAX                 CREDIT.

§11-6L-1. Definitions.

    In this article, “arts, entertainment and enterprise district,” “arts and entertainment enterprise” and “qualifying residing artist” have the meanings stated in section one, article two-h, chapter five-b of this code.

§11-6L-2. Tax credit allowed.

    The governing body of a county or municipal corporation may grant, by law, a property tax credit against the county or municipal corporation property tax imposed on a manufacturing, commercial or industrial building that:

    (1) Is located within an arts, entertainment and enterprise district; and

    (2) Is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise.

§11-6L-3. Duration of availability of credit.

    A tax credit granted under this section may not be granted for more than ten years.

ARTICLE 21. PERSONAL INCOME TAX.

§11-21-12j. Additional modification reducing federal adjusted                 gross income.

    (a) As used in this section, “artistic work,” “arts, entertainment and enterprise district,” and “qualifying residing artist” have the meanings stated in section one, article two-h, chapter five-b of this code.

    (b) In addition to the amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection (c), section twelve of this article, any income derived within an arts, entertainment and enterprise district by a qualifying residing artist from the publication, production or sale of an artistic work that the artist created, wrote, composed or executed in the arts, entertainment and enterprise district.

    (c) For the purpose of determining whether income is derived within an arts, entertainment and enterprise district for the purposes of this subsection, a qualifying artist shall allocate receipts and expenses as the Tax Commissioner may require.




    NOTE: The purpose of this bill is to allow for the creation of arts, entertainment and enterprise districts within municipalities or political subdivisions. The bill provides definitions. The bill provides for the application process to be followed by the political subdivisions, as determined the Secretary of Commerce. The bill further provides that the Secretary of Commerce may designate arts, entertainment and enterprise districts from among the applicants. The bill further provides for tax breaks for qualifying artists, property tax credits, and exemptions from the admissions or amusement tax.


    §5B-2H-1 through §5B-2H-7 are new; therefore, it has been completely underscored.


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


    §11-6L-1 through §11-6L-3 are new; therefore, it has been completely underscored.


    §11-21-12j is new; therefore, it has been completely underscored.

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