H. B. 4703
(By Delegate Sparks)
[Introduced February 25, 2000; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact section eleven, article one-a, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to requiring the tax
commissioner to increase the valuation of coal reserves that
are amenable to being mined.
Be it enacted by the Legislature of West Virginia:
That section eleven, article one-a, 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 1A. APPRAISAL OF PROPERTY FOR PERIODIC STATEWIDE
REAPPRAISALS.
§11-1A-11. Valuation of certain classes or species of property;
reserve coal properties; oil producing properties;
gas producing properties; timberland; active mining mineral interest; commercial real property and
industrial land; commercial and industrial
furniture, fixtures, machinery and equipment;
intangible personal property; public utility
property; vehicles, watercraft and aircraft.
On or before the first day of September, one thousand nine
hundred eighty-three, the 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 methods whereby the tax
commissioner will determine the market value, during the first
statewide reappraisal, of the following property:
(1) Active and reserve coal properties: Provided, That, on or
before the first day of September, two thousand one, the tax
commissioner shall propose rules for legislative approval in
accordance with the provisions of article three, chapter
twenty-nine-a that recognize and factor in an increase in value of
reserve coal properties susceptible to being mined and extracted by
ordinary and conventional coal mining methods. The rules shall
describe in detail methods whereby the tax commissioner determines
that the reserve coal property is susceptible to mining and
extraction by ordinary and conventional industry methods and the
rationale and attendant calculation attributable to the increase in value relative to reserve coal property not susceptible to mining
and extraction by ordinary and conventional industry methods.
(2) Oil producing properties;
(3) Gas producing properties;
(4) Timberland;
(5) Active mining mineral interests including limestone,
fireclay, dolomite, sandstone and other actively mined minerals;
(6) Commercial real property and industrial land;
(7) Commercial and industrial furniture, fixtures, machinery
and equipment;
(8) Intangible personal property, including stock, accounts
receivable and stocks in banks and capital of savings and loan
associations;
(9) Public utility property; and
(10) Vehicles, watercraft and aircraft.
NOTE: The purpose of this bill is to increase the ultimate tax
on reserve coal properties that is susceptible to mining by
conventional mining methods. The rationale for the increase is
that if valuation for assessment purposes is increased due to the
practical potential to mine the coal that owners will have a
financial incentive to mine the coal rather than allowing it to
remain unmined in the ground.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.