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Introduced Version House Bill 2950 History

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H. B. 2950

 

         (By Delegates White and T. Campbell)

         [By request of the Tax Division

         [Introduced January 31, 2011; referred to the

         Committee on Finance.]

 

 

 

A BILL to amend and reenact §11-6F-2 of the Code of West Virginia, 1931, as amended, relating to reducing the required original cost of manufacturing facilities and reducing the required cost of the capital addition when determining eligibility for the special method for appraising such property; and excluding real property from the measure of the certified capital addition property and from the measure of the qualified capital addition to a manufacturing facility.

Be it enacted by the Legislature of West Virginia:

    That §11-6F-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 6F. SPECIAL METHOD FOR APPRAISING QUALIFIED CAPITAL ADDITIONS TO MANUFACTURING FACILITIES.

§11-6F-2. Definitions.

    As used in this article, the term:

    (a) “Certified capital addition property” means all real property and personal property included within or to be included within a qualified capital addition to a manufacturing facility that has been certified by the State Tax Commissioner in accordance with section four of this article: Provided, That airplanes and motor vehicles licensed by the Division of Motor Vehicles shall in no event constitute certified capital addition property: Provided, however, That no real property purchased, leased, constructed, located or installed on or after January 1, 2012, may be included in the measure of certified capital addition property.

    (b) “Manufacturing facility” means any factory, mill, chemical plant, refinery, warehouse, building or complex of buildings, including land on which it is located, and all machinery, equipment, improvements and other real property and personal property located at or within the facility used in connection with the operation of the facility in a manufacturing business.

    (c) “Personal property” means all property specified in subdivision (q), section ten, article two, chapter two of this code and includes, but is not limited to, furniture, fixtures, machinery and equipment, pollution control equipment, computers and related data processing equipment, spare parts and supplies.

    (d) “Qualified capital addition to a manufacturing facility” means all real property and personal property, the combined original cost of all of the property which exceeds $50 million to be constructed, located or installed at or within two miles of a manufacturing facility owned or operated by the person making the capital addition that has a total original cost before the capital addition of at least $100 million: Provided, That if beginning on and after January 1, 2012, “qualified capital addition to a manufacturing facility” means only personal property, the combined original cost of which exceeds $10 million to be constructed, located or installed on or after January 1, 2012, at or within two miles of a manufacturing facility owned or operated by the person making the capital addition that has a total original cost immediately before the capital addition of at least $20 million dollars. No real property purchased, leased, constructed, located or installed on or after January 1, 2012, may be included in the measure of the qualified capital addition to a manufacturing facility. If the capital addition is made in a steel, chemical or polymer alliance zone as designated from time-to-time by executive order of the Governor, then the person making the capital addition may for purposes of satisfying the requirements of this subsection join in a multiparty project with a person owning or operating a manufacturing facility that has a total original cost immediately before the capital addition of at least $100 million if the capital addition creates additional production capacity of existing or related products or feedstock or derivative products respecting the manufacturing facility: Provided, That with relation to multiparty projects entailing personal property, the combined original cost of which exceeds $10 million, to be constructed, located or installed on or after January 1, 2012, the total original cost of the manufacturing facility immediately before the capital addition must be at least $20 million.

    (e) “Real property” means all property specified in subdivision (p), section ten, article two, chapter two of this code and includes, but is not limited to, lands, buildings and improvements on the land such as sewers, fences, roads, paving and leasehold improvements.



    NOTE: The purpose of this bill is to reduce the disincentive for new capital investment by reducing the original cost requirement for a capital improvement to $20 million and to reduce the amount of required new investment to $10 million, and to limit it to personal property rather than both personal property and realty, in order to qualify for preferential treatment as a qualified capital addition.


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

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