HOUSE JOINT RESOLUTION NO. 38

              (By Delegates White, Manchin, Armstead,

               Lane, Anderson, Cowles, Reynolds, Perdue,

                    Craig, Miley and Williams)

[Introduced March 25, 2013; referred to the Committee on Constitutional Revision then Finance.]

Proposing an amendment to the Constitution of the State of West Virginia, amending article X thereof, by adding thereto a new section, designated section one-d, relating to authorizing the Legislature to exempt certain property or a portion of its value from ad valorem taxation; authorizing the Legislature to exempt from ad valorem taxation certain tangible personal property; authorizing the Legislature to reduce maximum levy rates on certain tangible personal property as an alternative to exempting such property from ad valorem property taxation; authorizing the Legislature to exempt from ad valorem taxation certain real property; requiring the Legislature to provide measures by which revenues reduced or lost as a result of such exemptions or rate reduction may be replaced; prohibiting any impact on any excess levy in effect at the time an exemption or rate reduction takes effect; authorizing the Legislature to phase in an exemption or rate reduction over a period not to exceed five years on property being taxed at the time an exemption or rate reduction takes effect; numbering and designating such proposed amendment; and providing a summarized statement of the purpose of such 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 2014, which proposed amendment is that article X thereof be amended by adding thereto a new section, designated section one-d, to read as follows:

ARTICLE X. TAXATION AND FINANCE.

§1d. Ad valorem taxation of tangible personal property directly used in commercial and industrial businesses; Increase in exemption for certain real property used as a primary residence or homestead.

    Subsection A - Ad valorem taxation of tangible personal property directly used in commercial and industrial businesses

    Any other provision of this Constitution notwithstanding, the Legislature may by general law exempt tangible personal property directly used in commercial and industrial businesses, or such components thereof as the Legislature in its discretion may by law designate, from ad valorem property taxation. As an alternative to exempting such tangible personal property from ad valorem property taxation, the Legislature may by general law reduce the maximum levy rates provided in section one of this article on such property, or such types thereof as the Legislature may by law designate. Should the Legislature enact such an exemption or rate reduction, it shall at the same time by general law provide measures by which revenues reduced or lost as a result of such exemption or rate reduction may be replaced. Any such exemption or rate reduction may not work to reduce any excess levy in effect at the time such exemption or rate reduction takes effect, but only for such time as such excess levy is in effect. Any exemption or rate reduction under this section may be phased in by the Legislature by general law over a period not to exceed five years for tangible personal property being taxed as of the time such exemption or rate reduction takes effect.

    Subsection B - Increase in exemption for certain residential real property used as a primary residence or homestead.

    Notwithstanding any other provision of the Constitution, the Legislature may by law exempt the first $30,000 of assessed valuation of any property, or of personal property in the form of a mobile home, used exclusively for residential purposes and occupied by the owner or one of the owners thereof as his or her primary residence who is a citizen of this state and who is sixty-five years of age or older or is permanently and totally disabled as that term may be defined by the Legislature, subject to requirements, limitations and conditions as shall be prescribed by general law. Should the Legislature enact such an exemption, it shall at the same time by general law provide measures by which revenues lost as a result of such exemption may be replaced. Any such exemption may not work to reduce any excess levy in effect at the time such exemption takes effect, but only for such time as such excess levy is in effect. Any exemption under this section may be phased in by the Legislature by general law over a period not to exceed five years for real property being taxed as of the time such exemption takes effect.

    Resolved further, That in accordance with the provisions of article eleven, chapter three of the Code of West Virginia, 1931, as amended, such proposed amendment is hereby numbered “Amendment No. 1" and designated as the “Property Tax Limitation and Homestead Exemption Amendment of 2014,” and the purpose of the proposed amendment is summarized as follows: “To amend the State Constitution to permit the Legislature to increase the homestead exemption to $30,000 for certain citizens who are at least 65 years of age or are permanently or totally disabled and to exempt or reduce maximum levy rates on tangible personal property, or such types thereof as the Legislature may designate, used directly in commercial and industrial businesses, from ad valorem taxation and to require the Legislature to provide measures by which revenues reduced or lost as a result of such exemptions or rate reduction may be replaced.”

    NOTE: The purpose of this resolution is to amend the State Constitution to permit the Legislature to increase the homestead exemption to $30,000 for certain citizens who are at least 65 years of age or are permanently or totally disabled; to exempt or reduce maximum levy rates on tangible personal property, or such types thereof as the Legislature may designate, used directly in commercial and industrial businesses, from ad valorem taxation; and to require the Legislature to provide measures by which revenues reduced or lost as a result of such exemptions or rate reduction may be replaced.

    This section is new; therefore, it has been completely underscored.