Senate Bill No. 708

(By Senators Craigo and Prezioso)

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[Introduced February 23, 1998; referred to the Committee on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact sections ten and eleven, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section seven, article one, chapter eleven-a of said code, all relating to ad valorem property taxes; allowing extensions of time to file required returns or reports with the tax commissioner, county assessors or board of public works; changing penalties for failure to file statements, returns or reports required by law, or where property owner fails or refuses to answer or answers falsely questions asked; and prohibiting collection of current taxes until delinquent taxes on real or personal property are paid, including interest and penalties.

Be it enacted by the Legislature of West Virginia:
That sections ten and eleven, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty- one, as amended, be amended and reenacted; and that section seven, article one, chapter eleven-a of said code be amended and reenacted, all to read as follows:
CHAPTER 11. TAXATION.

ARTICLE 3. ASSESSMENTS GENERALLY.
§11-3-10. Failure to list property, etc.; collection of penalties and forfeitures.
(a) If any person, firm or corporation, including public service corporations, whose duty it is by law to list any real estate or personal property for taxation, shall fail or refuse to furnish a proper list thereof or fail or refuse to list within the time required by law, including any authorized extension of time not to exceed sixty days, or if any person, firm or corporation, including public service corporations, shall fail or refuse to answer or shall answer falsely any question asked by the assessor or by the tax commissioner, or shall fail or refuse to deliver any statement, return or report required by law, he, she or it shall, in the case of each failure or refusal, forfeit not less than twenty-five nor more than one hundred dollars, and shall be denied all remedy provided by law for the correction of any assessment made by the assessor or by the board of public works.
(b) If any person, firm or corporation, including public service corporations, required by law to make return or report of property for taxation, whether such the return or report is to be made to the tax commissioner, assessor, the board of public works, or any other assessing officer or body, fails or refuses to return a true list of all property which should be assessed in this state, including notes, bonds, bills and accounts receivable, stocks, and any other intangible personal property, such that person, firm or corporation, in addition to all other penalties provided by law, shall forfeit one percent of the assessed value of the property not yet returned and not otherwise taxed in this state: Provided, That within the discretion of the officer to whom the return or report is to be made, the forfeiture or penalty as to any property may be abated, in whole or in part, upon written request of that person, firm or corporation made within thirty days of receipt of written notice of the forfeiture, and upon a finding by the officer that the failure to return a true list of the property was due to reasonable cause and not to negligence or intentional disregard of applicable provisions of law. A forfeiture under this subsection as to all property aforesaid may be enforced for any such default occurring in any year not exceeding five years immediately prior to the time the same default is discovered. but no liability to penalty or forfeiture as to notes, bonds, bills and accounts receivable, stocks and other intangible personal property arising prior to the first day of January, one thousand nine hundred thirty-three, shall be enforceable on behalf of the state or of any of its subdivisions Each failure to make a true statement return or report as herein required shall constitute under this section constitutes a separate offense, and a forfeiture shall apply applies to each of them, but all such forfeitures, to which the same person, firm or corporation is liable, shall be enforced in one proceeding against such that person, firm or corporation, or against the estate of any deceased person and shall not exceed five percent of the assessed value of the property not returned. Such The forfeitures shall be collected as is hereinafter provided under the provision of article two, chapter eleven-a of this code, the same as any tax liability, against the defaulting taxpayer, or in case of a decedent, against his or her personal representative. The sheriff shall apportion such the fund among the state, county, district, school district and municipalities which would have been entitled to the taxes upon such the property if it had been assessed, in proportion to the rates of taxation for each such levying unit for the year in which the judgment was obtained bears to the sum of rates for all. When the list of property returned by the appraisers of the estate of any deceased person shows an amount greater than the last assessment list of such the deceased person next preceding the appraisal of his or her estate, it shall be is prima facie evidence that such the deceased person returned an imperfect list of his or her property: Provided, That any person liable for the tax or his or her personal representative, may always be permitted to prove by competent evidence that the discrepancy between such the assessment list and the appraisal of the estate is caused by a difference of valuation returned by the assessor and that made by the appraisers of the same property or by property acquired after assessment, or that any property enumerated in the appraisers' list had been otherwise listed for taxation, or that it was not liable for taxation. Any judgment recovered under this section shall be is a lien, from the time of the service of the notice, upon all real estate and personal property of such the defaulting taxpayer, owned at the time or subsequently acquired, in preference to any other lien.
(c) The assessor shall give notice of the applicability of the denial of all remedy and of the imposition of the penalties and forfeitures, described in this section, by the publication of a notice as a retail display advertisement as opposed to, and other than, a legal and classified advertisement, to be published in every newspaper of general circulation within the county. The advertisement shall be of a size and in the form prescribed by the tax commissioner and shall be placed in a location prescribed by the tax commissioner. The advertisements required to be published by the provisions of this section shall not include the name of the tax commissioner or any other public official or employee. The cost of the advertisements shall be shared, pro rata, by the county, municipalities and boards of education.
(d)
Effective Date. -- Amendments to this section enacted in the year one thousand nine hundred ninety-eight, apply to assessment years beginning on or after the first day of July, one thousand nine hundred ninety-eight. For prior assessment years, the language of this section as then in effect is fully preserved for those assessment years.
§11-3-11. Making or correction of list by assessor.

(a) If any person fail fails to furnish a proper list, or if the list furnished be is, in the judgment of the assessor, incomplete or erroneous in any respect, the assessor shall proceed to list the property and assess its value, or to supply the omission and correct the errors, upon the best information he or she can obtain, and for that purpose the assessor may call upon any officer of the state, county or district for such the proper information as it may be in his or her power to give, and may require any person having possession, charge or control of any property in the county to permit him the assessor to examine the same property in order that a fair valuation thereof of the property may be made, and if any person refuse to do so, he or she shall forfeit not less than ten nor more than fifty dollars twenty-five dollars and be denied all remedy provided by law for correction of the assessment made by the assessor.
(b)
Effective date. -- Amendments to this section, enacted in the year one thousand nine hundred ninety-eight, apply to assessment years beginning on or after the first day of July, one thousand nine hundred ninety-eight. For prior assessment years, the language of this section as then in effect is fully preserved for those assessment years.
§11-3-11. Making or correction of list by assessor.

(a) If any person fails to furnish a proper list, or if the list furnished is, in the judgment of the assessor, incomplete or erroneous in any respect, the assessor shall proceed to list the property and assess its value, or to supply the omission and correct the errors, upon the best information he or she can obtain, and for that purpose the assessor may call upon any officer of the state, county or district for the proper information as it may be in his or her power to give, and may require any person having possession, charge or control of any property in the county to permit him the assessor to examine the property in order that a fair valuation of the property may be made, and if any person refuse to do so, he or she shall forfeit not less than ten nor more than fifty dollars twenty-five dollars and be denied all remedy provided by law for correction of the assessment made by the assessor.
(b)
Effective date. -- Amendments to this section, enacted in the year one thousand nine hundred ninety-eight, shall apply to assessment years beginning on or after the first day of July, one thousand nine hundred ninety-eight. For prior assessment years, the language of this section as then in effect is fully preserved for those assessment years.

CHAPTER 11A. COLLECTION AND ENFORCEMENT OF PROPERTY TAXES.

ARTICLE 1. ACCRUAL AND COLLECTION OF TAXES.
§11A-1-7. No collection of current taxes until delinquent taxes are paid.

The sheriff, in preparing his the tax receipts for any current year shall examine and compare them with the delinquent list for the preceding year in his or her hands, and if any tract property is found to be delinquent for the preceding year, shall note the fact on his the current receipts and shall decline to receive current taxes on any land property where it appears to his or her office that a prior year's taxes including any interest, penalties or forfeitures are unpaid. Acceptance of current taxes through oversight shall not relieve the owner of any land property, of the liability to pay prior taxes and interest, penalties and forfeitures imposed for nonpayment.



NOTE: The purpose of this bill is to provide more clear penalties for failure to fully report property for ad valorem taxation and allow opportunities to extend the deadline for reporting.

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