Committee Substitute
House Bill 2986 History
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COMMITTEE SUBSTITUTE
FOR
H. B. 2986
(By Delegates Manchin, Longstreth and Caputo
)
(Originating in the House Committee on the Judiciary)
[March 27, 2009]
A BILL to amend and reenact
§11-22-2 of
the Code of West Virginia,
1931, as amended, relating to allowing the imposition of a tax
on the transfer of real estate within the incorporated limits
of any municipality.
Be it enacted by the Legislature of West Virginia:
That §11-22-2 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 22. EXCISE TAX ON PRIVILEGE OF TRANSFERRING REAL PROPERTY.
§11-22-2. Rate of tax; When and by whom payable; Additional county
tax.
(a) (1) Every person who delivers accepts or presents for
recording any document, or in whose behalf any document is
delivered, accepted or presented for recording, is subject to pay
for, and in respect to the transaction or any part thereof, a state
excise tax upon the privilege of transferring title to real estate
at the rate of $1.10 for each $500 value or fraction thereof as represented by the document as defined in section one of this
article. The state tax is payable at the time of delivery,
acceptance or presenting for recording of the document.
(2) In addition to the state excise tax described in this
subsection, there is assessed a fee of $20 upon the privilege of
transferring real estate for consideration. The clerk of the
county commission shall collect the additional $20 fee before
recording a transfer of title to real estate and shall deposit the
moneys from the additional fees into the West Virginia Affordable
Housing Trust Fund as provided in article eighteen-d, chapter
thirty-one of this code. The moneys collected from this additional
fee shall be segregated from other funds in the West Virginia
Affordable Housing Trust Fund and shall be accounted for
separately. Not more than 10% of these additional moneys may be
expended by the West Virginia Affordable Housing Trust Fund to
defray administrative and operating costs and expenses actually
incurred by the West Virginia Affordable Housing Trust Fund.
(3) The Housing Development Fund, as fiscal agent of the West
Virginia Affordable Housing Trust Fund, shall publish monthly on
the internet site an accounting of all revenue deposited into the
fund during the month and a full disclosure of all expenditures
from the fund including the group receiving funds, their location
and any contractor awarded the construction contract.
(4) Additionally, The West Virginia Affordable Housing Trust Fund is to provide an annual shall report to the Joint Committee on
Government and Finance before the on December 1 2007, and of each
year. thereafter.
(b) (1) Effective the first day of January, one thousand nine
hundred sixty-eight, and thereafter, There is imposed an additional
county excise tax for the privilege of transferring title to real
estate at the rate of $.55 for each $500 value or fraction thereof
as represented by such the document as defined in section one of
this article.
(2) which The county tax shall be payable at the time of
delivery acceptance or presenting for recording of such the
document.
(3) Provided, That after the July 1, 1989, The county may
increase said the excise tax to an amount equal to the state excise
tax. The additional tax hereby imposed is declared to be a county
tax and to be used for county purposes.
(4) Provided, however, That Only one such state tax and one
such county tax shall be paid on any one document and shall be
collected in the county where the document is first admitted to
record, and the tax shall be paid by the grantor therein unless the
grantee accepts the document without such tax having been paid, in
which event such the tax shall be paid by the grantee;
(5) Provided further, That On any transfer of real property
from a trustee or a county clerk transferring real estate sold for taxes, such the tax shall be paid by the grantee.
(6) The county excise tax imposed under this section
subsection may not be increased in any county unless the increase
is approved by a majority vote of the members of the county
commission. of such county. Any county commission intending to
increase the excise tax imposed in its county shall publish a
notice of its intention to increase such the tax not less than
thirty days nor more than sixty days prior to the meeting at which
such the increase will be considered, such the notice to be
published as a Class I legal advertisement in compliance with the
provisions of article three, chapter fifty-nine of this code and
the publication area shall be the county in which such the county
commission is located.
(c) (1) Effective January 1, 2010, a municipality has plenary
power and authority to enact an ordinance to
impose upon any person
who delivers or presents for recording any document representing a
value of $25,000 or more, as defined in section one of this
article, and as more specifically defined in subsection (c)(6) of
this section, or in whose behalf any such document is delivered,
accepted or presented for recording
, a municipal excise tax upon
the privilege of transferring title to real estate in the amount of
$50. The municipal tax is payable at the time of delivery,
acceptance or presenting for recording of the document. The clerk
of the county commission collects the municipal excise tax before recording a transfer of title to real estate and deposits the
amount collected into the account of the municipality in which the
property is located.
The clerk of the county commission shall
charge and collect for recording a document under this subsection
(c), in addition to any other fee prescribed by law, the fee
prescribed by subsection (a)(6) of section ten, article one,
chapter fifty-nine of this code, for documents not otherwise
referenced in that subsection.
(2) The municipal excise tax authorized by this section may
not be levied or collected sooner than ninety days after adoption
by the municipality's governing body of the ordinance imposing it.
(3) A municipality intending to consider imposing the excise
tax shall publish a notice of its intention to do so not less than
thirty days nor more than sixty days before the meeting at which
the tax will be considered. The notice shall be published as a
Class I legal advertisement in compliance with the provisions of
article three, chapter fifty-nine of this code, and the publication
area shall be the county in which the municipality is located.
(4) The municipality shall segregate from its other funds and
shall account separately for funds collected from the municipal
transfer tax.
(5) Funds collected from the municipal transfer tax may be
used only for the demolition of buildings that are condemned or
deemed abandoned by the courts, or that the municipality has taken over for reasons of public safety.
(6) As used in this subsection (c), "document" has the meaning
set forth in section one of this article, except that the document
evidences the grant, conveyance, or other transfer of real property
located within a municipality which has imposed the municipal
excise tax.