Senate Bill No. 346
(By Senators Ross, Anderson,
Bowman
and Boley)
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[Introduced January 28, 1999;
referred to the
Committee on Finance;
and then to the Committee on the Judiciary.]
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A BILL to amend and reenact section two, article seven,
chapter sixty-four of the code of West Virginia,
one thousand nine hundred thirty-one, as amended,
relating to authorizing the state tax commissioner
to promulgate a legislative rule relating to the
valuation of public utility property for ad valorem
property tax purposes.
Be it enacted by the Legislature of West Virginia:
That section two, article seven, chapter sixty-four
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, to read
as follows:
ARTICLE 7. AUTHORIZATION FOR DEPARTMENT OF TAX AND
REVENUE TO PROMULGATE LEGISLATIVE RULES.
§64-7-2. Department of tax and revenue; tax division;
and state tax commissioner.
(a) The legislative rule filed in the state register
on the twenty-third day of July, one thousand nine
hundred ninety-six, authorized under the authority of
section five, article thirteen-j, chapter eleven of this
code, modified by the tax division to meet the objections
of the legislative rule-making review committee and
refiled in the state register on the thirty-first day of
October, one thousand nine hundred ninety-six, relating
to the tax division (tax credit for qualified
agricultural equipment, 110 CSR 13J), is authorized.
(b) The legislative rule filed in the state register
on the sixteenth day of August, one thousand nine hundred
ninety-six, authorized under the authority of section
fifty-one, article twenty-one, chapter eleven of this code, modified by the tax division to meet the objections
of the legislative rule-making review committee and
refiled in the state register on the thirty-first day
of October, one thousand nine hundred ninety-six,
relating to the tax division (personal income tax low
income exclusions, 110 CSR 21.1), is authorized.
(c) The legislative rule filed in the state register
on the sixteenth day of August, one thousand nine hundred
ninety-six, authorized under the authority of section
twenty-one, article twenty-one, chapter forty-seven of
this code, modified by the tax division to meet the
objections of the legislative rule-making review
committee and refiled in the state register on the
twenty-seventh day of February, one thousand nine hundred
ninety-seven, relating to the tax division (charitable
raffles, 110 CSR 37), is authorized.
(d) The legislative rule filed in the state register
on the twenty-ninth day of July, one thousand nine
hundred ninety-eight, authorized under the authority of
section seven-b, article six, section one, article six-g,
and section five, article one-c,
chapter eleven, of this
code, modified by the state tax commissioner
to meet the
objections of the legislative rule-making review
committee and refiled in the state register on the
fifteenth day of January, one thousand nine hundred
ninety-nine, relating to the state tax commissioner
(valuation of public utility property
for ad valorem
property tax purposes
, 110 CSR 1M), is authorized with
the amendments set forth below:
On page two, by striking-out all of subsection 2.5;
On page two, by striking-out all of subsection 2.7
and inserting in lieu thereof a new subsection 2.7 to
read as follows:
"§2.7 "Fair market value" means the highest price in
terms of money that a property will bring in a
competitive and open market, assuming that the buyer and
seller are acting prudently and knowledgeably, allowing
sufficient time for the sale and assuming that the price
is not affected by undue stimulations.";
On page four, subsection 3.1, after the word "generally," by inserting the words "when the cost
approach is used,";
On page four, subsection 3.1, after the word
"purposes," by striking-out the period and inserting in
lieu thereof a colon and the word "however,";
On page four, by striking-out all of subdivision
3.1.1, and inserting in lieu thereof new subdivision
3.1.1 to read as follows:
" 3.1.1 When the income approach is used, the unit
of value shall be allocated to the state of West Virginia
using operating plant data after which;"
On page five, subdivision 3.1.2, by striking-out the
word "property" and inserting in lieu thereof the words
"physical plant";
On page five, by striking-out all of subdivision
4.2.1 and inserting in lieu thereof a new subdivision
4.2.1 to read as follows:
"4.2.1 Cost approach. -- Recognizing that public
service corporations are predominantly cost regulated,
when the cost approach is used in the valuation process, original cost less applicable depreciation shall be
employed. In applying the cost approach, the Tax
Commissioner shall consider three (3) types of
depreciation; (a) physical deterioration, (b) functional
obsolescence, and (c) economic obsolescence.";
On page five, subdivision 4.2.2 after the word
"interest" by striking-out the word "expense" and
inserting in lieu thereof "on long-term debt";
On page six, by striking-out all of subdivision
4.2.4;
On page six, subdivision 4.2.5 after the word
"process" by changing the colon to a period and by
striking-out the remainder of the subdivision;
On page eight, by striking-out all of subdivision
4.3.13;
And,
On page ten, by adding the new subsection 6.5 to
read as follows:
"The Tax Commissioner, for good cause shown, may
grant an extension of filing deadlines."
NOTE: The purpose of this bill is to authorize the
State Tax Commissioner
to promulgate a legislative rule
relating to the Valuation of Public Utility Property
for
Ad Valorem Property Tax Purposes
.
Strike-throughs indicate language that would be
stricken from the present law, and underscoring indicates
new language that would be added.