COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 79
(By Senators Craigo, Ball, Kessler, Bowman, Anderson, Dittmar,
Ross, Plymale and Sharpe)
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[Originating in the Committee on the Judiciary;
reported January 28, 2000.]
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A BILL to amend and reenact section one-b, article three, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to specifying a
fair methodology for the appraisal of real property
undergoing development; setting forth definitions;
establishing factor for valuation; providing for legislative
rule; providing that the sale or development of one lot
within a recorded plan shall not be the sole factor in
valuing the remaining property for ad valorem real property
tax purposes; and setting effective dates.
Be it enacted by the Legislature of West Virginia:
That section one-b, article three, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 3. ASSESSMENTS GENERALLY.
§11-3-1b. Recordation of plat or designation of land use not to
be basis for assessment; factors for valuation; legislative
rule; effective dates.
(a) The recordation of a plan or plat, or the designation
of proposed land use by a county or municipal planning authority
shall not be used by the assessor as a basis in the valuation or
assessment of real property for the purposes of taxation, except
as hereafter provided. until such time as the actual use of such
real property or any part thereof, has changed to correspond to
the plan, plat or proposed use The valuation of real property
contained in a recorded plan or plat is as follows:
(1) When a lot or parcel within a recorded plan or plat is
sold, that lot shall be revalued by the county assessor. In no
event may the remaining lots within the recorded plan or plat be
automatically revalued solely based upon the sale of one or two
lots within the recorded plan or plat.
(2) When land contained within a recorded plan or plat is
developed and actually used for a commercial, residential or
industrial purpose, such land shall be revalued by the county
assessor or the tax commissioner, depending upon whoever has
authority over the same, but in no event may the remaining lots within the recorded plan or plat be automatically revalued solely
based upon the sale of one or two lots within the recorded plan
or plat.
(b) For valuation of the remaining lots or parcels or
undeveloped portion within the recorded plan or plat, the
following factors shall be taken into consideration in
determining the valuation: (1) access and availability of
improved roads; (2) access and availability of sewage disposal
and drinking water supply, including, but not limited to, the use
of such factors as availability of public water and sewage
systems, private water systems, water wells or potential water
wells, private sewage and septic systems or potential private
sewage and septic systems;
(3) access and availability of
electrical, telephone and other utility services; and (4)
percentage of completion of improvements and infrastructure
development. The assessor shall annually determine the
percentage of completion of improvements and infrastructure
development. The state tax commissioner shall propose a
legislative rule for submission to the legislature pursuant to
the provisions of article three, chapter twenty-nine-a of this
code, which rule shall describe in detail the methodology and use
of the factors set out above, as well as any other factors
determined by the tax commissioner to be applicable, for valuation of percentage completion of improvements and
infrastructure development. The remaining lots or parcels or
undeveloped portion within the recorded plan or plat are not farm
property
for purposes of valuation of farm property under section
ten, article one-a, of this chapter, or managed timberland for
purposes of valuation of managed timberland under sections eleven
and eleven-a, article one-c of this chapter. For purposes of
classification of property for levy purposes under section five,
article eight of this chapter, developed lots or parcels shall
not be reclassified from Class III to Class II until the
developed lot or parcel is used and occupied by the owner thereof
exclusively for residential purposes.
(c) The designation of proposed land use by a county or
municipal planning authority may not be used or considered by an
assessor in determining the appraised value of property included
under a designation of proposed land use by a county or municipal
planning authority until such time as the actual use of the real
property has changed to correspond to the proposed use.
(d) The amendments made to this section by the Legislature
in two thousand shall become effective on the first day of July,
two thousand, and shall be effective as to all plans or plats
filed after the thirtieth day of June, two thousand. The
provisions of the amendments made to this section in two thousand do not apply to unsold lots or parcels or undeveloped land
contained within recorded plans or plats which were recorded
prior to the first day of July, two thousand: Provided, That in
no event may the appraised value of unsold lots or parcels or
undeveloped land contained within these recorded plans or plats
be less than their appraised value as of the first day of July,
two thousand.
NOTE: The purpose of this bill is to provide that the sale
of one lot does not change the value of the remaining recorded
plan for tax purposes. Factors for the valuation for real
property tax purposes are established.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.