ENROLLED


Senate Joint Resolution No. 11

(By Senators Craigo, Sharpe, Jackson, Chafin, Prezioso, Plymale, Love, Helmick, Bowman, Anderson, Edgell, Unger, McCabe, Boley, Minear and Sprouse)

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[Adopted March 9, 2002.]

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Proposing an amendment to the Constitution of the State of West Virginia, amending article X thereof by adding thereto a new section, designated section eight-a, relating to the authority of the Legislature to define types of improvement projects and authorizing the issuance by counties of bonds to be payable from revenues derived from increased real or personal property taxes on such improvement projects in the county where the proposed project is located; numbering and designating the proposed amendment; and providing a summarized statement of the purpose of the proposed amendment.

Resolved by the Legislature of West Virginia, two thirds of the members elected to each house agreeing thereto:
ARTICLE X. TAXATION AND FINANCE.
§8a. Issuance of bonds payable from incremental increases in property taxes.

Notwithstanding any other provisions of this Constitution to the contrary, the Legislature by general law may define and prescribe specific types of material improvements to real and personal property which constitute economic development or redevelopment projects and authorize the issuance by counties and municipalities of revenue bonds to assist in financing qualified economic development projects that benefit the public health, welfare and safety subject to such conditions, restrictions or limitations as the Legislature may prescribe by general law. The Legislature may further determine the rights, remedies and conditions governing the projects, which may be located upon one or more parcels of real estate owned by one or more public or private entities.
The economic development or redevelopment projects shall be entered, valued and assessed on the land and personal property tax records of the appropriate taxing authority. The entries shall be made separately from the property so improved and, if located in more than one county or municipality, by separate entry for each applicable tax rate. The separate assessment is in addition to, and not in lieu of, the assessment for the property prior to the improvement. The bonds are payable from the property taxes on the increase in value of project property or the increase in value of property in economic development or redevelopment project area due to the capital investment in the project or projects.
No tax revenues of the county may be pledged to, or used for, the payment of the bonds, except for the increased tax revenues. The bonds issued shall be for a term not to exceed thirty tax years and may provide for the pledge of any other funds as the owner of the improvements may by contract or otherwise be required to pay. Upon payment in full of the bonds, the increased tax revenues shall revert to the appropriate levying bodies. The increased tax revenues from which the bonds may be paid shall not include taxes from excess levies, bond levies or other special levies.
Resolved further, That in accordance with the provisions of article eleven, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, this proposed amendment is hereby numbered "Amendment No. 1" and designated as the "County Option Economic Development Amendment", and the purpose of the proposed amendment is summarized as follows: "To amend the State Constitution to permit the Legislature to authorize the financing of a portion of the cost of qualified economic development or redevelopment projects through the issuance by counties and municipalities of revenue bonds payable from real and personal property taxes on new value resulting from the capital investment, not including taxes from excess levies, bond levies or other special levies, in the qualified economic development or redevelopment projects. Upon payment in full of the bonds, for a term not to exceed thirty years, the property tax revenues revert to the appropriate levying bodies. No property tax revenues of the local levying bodies may be pledged to, or used for, the payment of the bonds, except for the new property tax dollars attributable to the capital investment."