Senate Bill No. 508

(By Senators Ross, Anderson, Sharpe, Helmick, Plymale, Dittmar, Bowman, Boley, Buckalew, Kimble, Scott, Minear, Oliverio and Blatnik)

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[Introduced February 19, 1996; referred to the Committee
on Finance.]
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A BILL to amend and reenact section one, article one-c, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section fourteen, all providing that for tax years one thousand nine hundred ninety-seven and one thousand nine hundred ninety-eight, all property shall be annually assessed at the lesser of its value as determined under articles one-c, three, four and five, chapter eleven of said code or the value of such property as shown on the property books of the county in which the property is located for tax year one thousand nine hundred ninety-four.

Be it enacted by the Legislature of West Virginia:
That section one, article one-c, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section fourteen, all to read as follows:
ARTICLE 1C. FAIR AND EQUITABLE PROPERTY VALUATION.

§11-1C-1. Legislative findings.

(a) The Legislature hereby finds and declares that all property in this state should be fairly and equitably valued wherever it is situated so that all citizens will be treated fairly and no individual species or class of property will be overvalued or undervalued in relation to all other similar property within each county and throughout the state.
(b) The Legislature by this article seeks to create a method to establish and maintain fair and equitable values for all property. The Legislature does not intend by this article to implement the reappraisal as conducted under articles one-a and one-b of this chapter nor does it intend to affect tax revenue in any manner.
(c) The Legislature finds that requiring the valuation of property to occur in three-year cycles with an annual adjustment of assessments as to those properties for which a change in value is discovered shall not violate the equal and uniform provision of section one, article ten of the West Virginia constitution, the Legislature further finding that such three-year cycle and annual adjustment are an integral and indispensable part of a systematic review of all properties in order to achieve equality of assessed valuation within and among the counties of this state. Notwithstanding such finding, the Legislature intends to permit the assessors and the board of public works to place proportionately uniform percentage changes in values on the books during the two tax years preceding the tax year beginning on the first day of July, one thousand nine hundred ninety-three, in accordance with the provisions of section seven of this article.
(d) The Legislature deems that the goal of this article is that by the end of the three-year cycle contemplated by this article, and thereafter from year to year, all property shall be annually assessed at sixty percent of its then current fair market value except for the values derived for farms and managed timberland properties, which are to be valued as prescribed by this article one-c and article four of this chapter and except that the Legislature intends to provide for a period of stability in property taxation to permit taxpayers to adapt to the significant changes in values brought about by the end of the first three-year valuation cycle by setting the assessed value of real and personal property for tax years one thousand nine hundred ninety-seven and one thousand nine hundred ninety-eight, at the lesser of the value as prescribed under articles one-c, three, four and five of this chapter and the value on the property books of the county in which the property is located for tax year one thousand nine hundred ninety-four.
§11-1C-14. Stabilization of values.

Notwithstanding anything in this chapter to the contrary, the value of real and personal property for tax years one thousand nine hundred ninety-seven and one thousand nine hundred ninety-eight, shall be set at the lesser of the value as prescribed under articles one-c, three, four and five of this chapter and the value on the property books of the county in which the property is located for tax year one thousand nine hundred ninety-four.



NOTE: The purpose of this bill is to provide taxpayers with a period of stability in property taxation to adapt to the significant changes in values brought about by the end of the first three-year valuation cycle by setting the assessed value of real and personal property for tax years one thousand nine hundred ninety-seven and one thousand nine hundred ninety-eight, at the lesser of the value as prescribed under articles one-c, three, four and five of this chapter and the value on the property books of the county in which the property is located for tax year one thousand nine hundred ninety-four.

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

§11-1C-14 is new; therefore, strike-throughs and underscoring are omitted.