Senate Bill No. 477
(By Senators Love, Minard, Hunter and Mitchell)
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[Introduced February 1, 2002; 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 five and nine, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact sections four, five and six, article six-b of said chapter, all relating to allowing a supplemental assessment on personal property when personal property has been omitted from the record books; allowing a tax exemption for streets or rights-of-way when conveyed to a homeowner's association and dedicated for public use; extending date for claiming a homestead exemption to December from October, allowing the assessor to extend the deadline for claiming a homestead exemption in certain situations and extending the date for denying an exemption from January to November; and changing the time limitation for reviewing and determining an appeal after receiving notice of the appeal.

Be it enacted by the Legislature of West Virginia:
That sections five and nine, article three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that sections four, five and six, article six-b of said chapter be amended and reenacted, all to read as follows:

ARTICLE 3. ASSESSMENTS GENERALLY.

§11-3-5. Correction of previous property books; entry of omitted property.

The assessor in making out the land and personal property books, shall correct any and every mistake he shall discover in the books for any previous year.
When the assessor shall ascertain that any real or personal property in his county liable to taxation, other than that mentioned in the next succeeding paragraph, has been omitted from the land or personal property books for a period of less than five years, he shall make an entry thereof in the proper book of the year in which such omission was discovered, and assess the same according to the rule prescribed in section one of this article, and shall charge the same with all taxes chargeable against it at the rate of levy for the year or years the same was omitted, together with interest thereon at the rate of six percent per annum for the years the same was omitted from the books: Provided, That if the taxpayer requires proof of payment of personal property taxes pursuant to section three-a, article three, chapter seventeen-a, then the taxpayer may file a listing of all personal property owned on the assessment date preceding the tax year or years for which proof must be shown, to the assessor. The assessor shall then create a supplemental assessment for the year or years required for proof of payment, of all personal property provided on the listing and present the supplemental assessment to the sheriff who shall apply the levy rate or rates for the year or years so assessed and prepare a tax bill and collect the taxes together with interest thereon at the rate of six percent per annum for the years the same was omitted from the books and any penalties included thereon.
And when the assessor shall ascertain that any notes, bonds, bills and accounts receivable, stocks and other intangible personal property in his county liable to taxation has been omitted from the personal property books for a period of five years or less after December thirty-first, one thousand nine hundred thirty-two, he shall make entry thereof in the personal property book of the year in which such omission was discovered, and assess the same at its true and actual value according to the rule prescribed in section one of this article, and shall charge the same with all taxes chargeable against it after the year last aforesaid at the rate of levy for the year or years the same was omitted after the year aforesaid, together with interest thereon at the rate of six percent per annum for the years the same was omitted from the books.
Any assessor failing to make such entry as in this act provided, when discovered by him, or called to his attention by any taxpayer interested therein, shall forfeit one hundred dollars.

ARTICLE 3. ASSESSMENTS GENERALLY.

§11-3-9. Property exempt from taxation.
(a) All property, real and personal, described in this subsection, and to the extent herein limited, is exempt from taxation:
(1) Property belonging to the United States, other than property permitted by the United States to be taxed under state law;
(2) Property belonging exclusively to the state;
(3) Property belonging exclusively to any county, district, city, village or town in this state, and used for public purposes;
(4) Property located in this state, belonging to any city, town, village, county or any other political subdivision of another state, and used for public purposes;
(5) Property used exclusively for divine worship;
(6) Parsonages and the household goods and furniture pertaining thereto;
(7) Mortgages, bonds and other evidence of indebtedness in the hands of bona fide owners and holders hereafter issued and sold by churches and religious societies for the purposes of securing money to be used in the erection of church buildings used exclusively for divine worship, or for the purpose of paying indebtedness thereon;
(8) Cemeteries;
(9) Property belonging to, or held in trust for, colleges, seminaries, academies and free schools, if used for educational, literary or scientific purposes, including books, apparatus, annuities and furniture;
(10) Property belonging to, or held in trust for, colleges or universities located in West Virginia, or any public or private nonprofit foundation or corporation which receives contributions exclusively for such college or university, if the property or dividends, interest, rents or royalties derived therefrom are used or devoted to educational purposes of such college or university;
(11) Public and family libraries;
(12) Property used for charitable purposes, and not held or leased out for profit;
(13) Property used for the public purposes of distributing water or natural gas, or providing sewer service by a duly chartered nonprofit corporation when such property is not held, leased out or used for profit;
(14) Property used for area economic development purposes by nonprofit corporations when such property is not leased out for profit;
(15) All real estate not exceeding one acre in extent, and the buildings thereon, used exclusively by any college or university society as a literary hall, or as a dormitory or clubroom, if not used with a view to profit, including, but not limited to, property owned by a fraternity or sorority organization affiliated with a university or college, or property owned by a nonprofit housing corporation or similar entity on behalf of a fraternity or sorority organization affiliated with a university or college, when the property is used as residential accommodations, or as a dormitory for members of the organization;
(16) All property belonging to benevolent associations, not conducted for private profit;
(17) Property belonging to any public institution for the education of the deaf, dumb or blind, or any hospital not held or leased out for profit;
(18) Houses of refuge and lunatic or orphan asylums;
(19) Homes for children or for the aged, friendless or infirm, not conducted for private profit;
(20) Fire engines and implements for extinguishing fires, and property used exclusively for the safekeeping thereof, and for the meeting of fire companies;
(21) All property on hand to be used in the subsistence of livestock on hand at the commencement of the assessment year;
(22) Household goods to the value of two hundred dollars, whether or not held or used for profit;
(23) Bank deposits and money;
(24) Household goods, which for purposes of this section means only personal property and household goods commonly found within the house and items used to care for the house and its surrounding property, when not held or used for profit;
(25) Personal effects, which for purposes of this section means only articles and items of personal property commonly worn on or about the human body, or carried by a person and normally thought to be associated with the person when not held or used for profit;
(26) Dead victuals laid away for family use; and
(27) Streets or rights-of-ways used for ingress and egress in a sub-division when said streets or rights-of-way have been conveyed to a duly incorporated homeowner's association and the streets or rights-of-way have been dedicated for public use in an instrument of record in the land books of the office of the clerk of the county commission of the county in which the sub-division is located; and
(27) (28) Any other property or security exempted by any other provision of law.
(b) Notwithstanding the provisions of subsection (a) of this section, no property is exempt from taxation which has been purchased or procured for the purpose of evading taxation, whether temporarily holding the same over the first day of the assessment year or otherwise.
(c) Real property which is exempt from taxation by subsection (a) of this section shall be entered upon the assessor's books, together with the true and actual value thereof, but no taxes may be levied upon the property or extended upon the assessor's books.
(d) Notwithstanding any other provisions of this section, this section does not exempt from taxation any property owned by, or held in trust for, educational, literary, scientific, religious or other charitable corporations or organizations, including any public or private nonprofit foundation or corporation existing for the support of any college or university located in West Virginia, unless such property, or the dividends, interest, rents or royalties derived therefrom, is used primarily and immediately for the purposes of the corporations or organizations.
(e) The tax commissioner shall, by issuance of rules, provide each assessor with guidelines to ensure uniform assessment practices statewide to effect the intent of this section.

(f) In as much as there is litigation pending regarding application of this section to property held by fraternities and sororities, amendments to this section enacted in the year one thousand nine hundred ninety-eight shall apply to all cases and controversies pending on the date of such enactment.

§11-6B-4. Claim for exemption; renewals; waiver of exemption.

(a) General. -- No exemption shall be allowed under this article unless a claim of exemption is filed with the assessor of the county in which the homestead is located, on or before the first day of October December following the July first assessment day. In the case of sickness, absence or other disability of the claimant, the claim may be filed by the claimant or his duly authorized agent.
(b) Claims for disability exemption. -- Each claim for exemption based on the owner being permanently and totally disabled shall include one of the following forms of documentation in support of said claim: (1) A written certification by a doctor of medicine or doctor of osteopathy licensed to practice their particular profession in this state that the claimant is permanently and totally disabled; (2) a written certification by the social security administration that the claimant is currently receiving benefits for permanent and total disability; (3) a copy of the letter from the social security administration originally awarding benefits to the claimant for permanent and total disability and a copy of a current check for such benefits, marked void; (4) a current social security health insurance (medicare) card in the name of the claimant and a copy of a current check to the claimant, marked void, for benefits from the social security administration for permanent and total disability; (5) a written certification signed by the veterans administration certifying that a person is totally and permanently disabled; (6) any lawfully recognized workers' compensation documentation certifying that a person is totally and permanently disabled; (7) any lawfully recognized pneumoconiosis documentation certifying that a person is totally and permanently disabled; or (8) any other lawfully recognized documentation certifying that a person is totally and permanently disabled.
(c) Renewals. --
(1) Senior citizens. -- If the claimant is age sixty-five or older, then after the claimant has filed for the exemption once with his assessor, there shall be no need for that claimant to refile unless the claimant moves to a new homestead.
(2) Disabled. -- If the claimant is permanently and totally disabled, then after the claimant has filed for the exemption once with his or her assessor, and signed a statement certifying that he or she will notify the assessor if he or she is no longer eligible for an exemption on the basis of being permanently and totally disabled and that the claimant will notify the assessor within thirty days of the discontinuance of the receipt of benefits for permanent and total disability, if the claimant originally claimed receipt of said benefits to document his or her claim for exemption, there shall be no need for that claimant to refile, unless the claimant moves to a new homestead.
(3) Nothing herein shall prohibit the assessor from granting or continuing the Homestead Exemption when the claimant has become a resident of a nursing home or other extended care facility and no other person or persons occupies the property.
(3) (4) Waiver of exemption. -- Any person not filing his claim for exemption on or before the first day of October December shall be determined to have waived his right to exemption for the next tax year.

§11-6B-5. Determination; notice of denial of claim or exemption.

(a) The assessor shall as soon as practicable after a claim for exemption is filed, review that claim and either approve or deny it. If the exemption is denied, the assessor shall promptly, but not later than the first day of November January, serve the claimant with written notice explaining why the exemption was denied, and furnish a form for filing with the county commission should the claimant desire to take an appeal. The notice required or authorized by this section shall be served on the claimant or his authorized representative either by personal service or by certified mail.
(b) In the event that the assessor shall have information sufficient to form a reasonable belief that a claimant, after having been originally granted an exemption, is not eligible for said exemption, he or she shall deny the exemption on the next assessment date and shall promptly, but no later than the first day of November January, serve the claimant with written notice explaining the reasons for the denial and furnish a form for filing with the county commission should the claimant desire to take an appeal.

§11-6B-6. Appeals procedure.

(a) Notice of appeal; thirty days. -- Any claimant aggrieved by the denial of his or her claim for exemption or the subsequent denial of his or her exemption, may appeal to the county commission within thirty days after receipt of written notice explaining why the exemption was denied.
(b) Review; determination; appeal. -- The county commission shall complete its review and issue its determination within sixty days after receipt of the notice of appeal from the claimant as soon as possible after receipt of the notice of appeal, but in no case later than February twenty-eighth of the tax year for which the exemption shall be first applied. In conducting its review, the county commission may hold a hearing on the claim. The assessor or the claimant may apply to the circuit court of the county for review of the determination of the county commission in the same manner as is provided for appeals from the county commission in section twenty-five, article three of this chapter.

NOTE: The purpose of this bill is to

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