HOUSE RESOLUTION NO. 18

(By Delegate McGraw)




The Constitution of the State of West Virginia commands that, subject only to enumerated exceptions, taxation shall be equal and uniform throughout the State, and all property, both real and personal, shall be taxed in proportion to its value, with no one species of property from which a tax may be collected being taxed higher than any other species of property of equal value.

Whereas, The West Virginia Legislature, through its Acts, has directed the state tax commissioner to determine the fair market value of all natural resources property in the State and to see that the laws concerning assessment and collection of all taxes levied are faithfully enforced; and
Whereas, The West Virginia Supreme Court of Appeals has held that it is the duty of the state tax commissioner to ensure that property tax assessment occurs at full market value; and
Whereas, West Virginia's public schools rely on property tax revenues for approximately two thirds of their total financing; and
Whereas, Methods presently used by the tax commissioner to value natural resources property tend to habitually overvalue small holdings owned by individuals or families and undervalue huge tracts held by out-of-state corporate interests; and
Whereas, The present method of valuing natural resources property has resulted in a substantial disparity in tax treatment among taxpayers who own natural resources property and home owners, owners of motor vehicles, small business owners and all other property owners in this state; and
Whereas, West Virginia's general revenue fund derived approximately sixty-four percent of its total revenues for fiscal year 1996-1997 from the personal income tax and consumers sales tax combined, but derived only one tenth of one percent of its total revenues from property taxes on all types of property during the same period; and
Whereas, The systematic under appraisal of natural resources property in this state has placed a disproportionate tax burden upon all other property owners and resulted in a woefully under funded public education system; therefore, be it
Resolved by the House of Delegates:
That all natural resources property in the state be appraised in an equal and uniform manner, and that said property be fairly and equitably appraised on the basis of its fair market value in the same proportion as are all other classes of property within the state; and, be it
Further Resolved, That the tax commissioner implement the constitutional mandate of uniform and equal taxation; and, be it
Further Resolved, That the tax commissioner submit a report to the Joint Committee on Government and Finance within ninety days of the adoption of this resolution detailing the steps that are necessary to achieve the goal that, commencing in the tax year 1998, all natural resources property be valued on an equal and uniform basis in the same proportion to fair market value as are all other types of property in the state.


NOTE: The purpose of this resolution is to require the state tax commissioner to ensure that Natural Resources property in the state are taxed in the same proportion to their fair market value as are all other types of property in the state, such as homes, trailers, motor vehicles and small businesses.