ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2619
(By Delegate Michael)
[Passed April 11, 1997; in effect ninety days from passage.]
An Act to amend article five, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, by
adding thereto a new section, designated section thirteen-a,
relating to clarification of application of freeport warehouse
exemption against ad valorem property tax as it applies to
goods in a warehouse awaiting shipment out-of-state.
Be it enacted by the Legislature of West Virginia:
That article five, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirteen-a, to read as follows:
ARTICLE 5. ASSESSMENT OF PERSONAL PROPERTY.
§11-5-13a. Application of exemption to finished goods in
warehouse.
(a) This section is intended to clarify the intent of the Legislature and the citizens in establishing the exemption from ad
valorem property taxation granted by section one-c, article ten of
the West Virginia constitution and section thirteen of this article
as it pertains to goods held in warehouse facilities in this state
awaiting shipment to a destination outside this state. This
section codifies policies applied by agencies and departments of
this state upon which persons have relied. It is the intent of the
Legislature that the provisions of this section are to be liberally
construed in favor of a person claiming exemption from tax pursuant
to section one-c, article ten of the West Virginia constitution,
this section and section thirteen of this article.
(b) Goods which have been moved to a warehouse or storage
facility, at which no substantial alteration takes place, to await
shipment to a destination outside this state are deemed to be
moving in interstate commerce over the territory of the state and
therefore are exempt from ad valorem property tax and do not have
a tax situs in West Virginia for purposes of ad valorem taxation.
(c) Notwithstanding subsection (b) of this section, personal
property of inventories of natural resources shall not be exempt
from ad valorem taxation unless required by federal law.
(d) This section is intended to be declarative of the law as
of the enactment hereof and shall be fully retroactive.