WEST VIRGINIA LEGISLATURE
2022 REGULAR SESSION
Introduced
House Bill 4725
By Delegate Pritt
[Introduced February 15, 2022; Referred to the Committee on Finance]
A BILL to amend and reenact §11-1A-3 of the Code of West Virginia, 1931, as amended; and to amend and reenact §11-3-1 of said code, all relating to providing definitions for “market value” and “true and actual value”; and that property taxes may not be appraised and assessed higher than the value in 2019.
Be it enacted by the Legislature of West Virginia:
ARTICLE 1A. APPRAISAL OF PROPERTY.
§11-1A-3. Definitions.
As used in this article, unless the context clearly requires a different meaning:
(a) “Assessed value” of any item of property is its
assessed value after the certification of the first statewide reappraisal and
shall be 60 percent of the market value of such item of property regardless of
its class or species, except as hereinafter specifically provided in this
article;
(b) “Base year” shall have the meaning ascribed to that
term by the provisions of section two of this article;
(c) “Commission” shall mean means the West
Virginia appraisal control and review commission;
(d) “Commissioner” or “Tax Commissioner” shall mean
means the chief executive officer of the state Tax Department except in
those instances where the context clearly relates to the West Virginia
appraisal control and review commission, in which case “commissioner” shall
mean any member of such commission;
(e) “Designated agent” shall mean means a
person, not directly employed by the Tax Commissioner, who is designated by the
Tax Commissioner to perform reappraisal functions authorized or required by
this article. Such This term shall include, but not be limited to,
agents and independent contractors, and nothing in this article shall may
be construed to alter the relationship of the State of West Virginia, or its
officers, and such persons to create relationships not contemplated by
agreements between the Tax Commissioner and such persons;
(f) “Farm” shall mean means and include
includes land currently being used primarily for farming purposes,
whether by the owner thereof or by a tenant, and which has been so used for at
least seasonally during the year next preceding the then current tax year, but shall
not include lands used primarily in commercial forestry or the growing
of timber for commercial purposes; and shall may not include one
acre surrounding the principal residence situate on a farm which shall be valued
as a homesite in the same manner as surrounding homes and properties not
situated on farmland, taking into consideration such variables as location,
resale value and accessibility. The commissioner of agriculture shall formulate
criteria upon which a parcel of land qualifies as a “farm.” The county assessor
may require the assistance of the commissioner of agriculture in making a
determination of whether a parcel of land qualifies as a “farm.”
(g) “Farming purposes” shall mean means the
utilization of land to produce for sale, consumption or use, any agricultural
products, including, but not limited to, livestock, poultry, fruit, vegetables,
grains or hays or any of the products derived from any of the foregoing,
tobacco, syrups, honey, and any and all horticultural and nursery stock,
Christmas trees, all sizes of ornamental trees, sod, seed and any and all
similar commodities or products including farm wood lots and the parts of a
farm which are lands lying fallow, or in timber or in wastelands;
(h) “Property situate in this state” shall mean means:
(1) Property having legal situs in this state; or
(2) In the case of persons with a place of business located in this state and authorized to do business in this state and one or more other states of the United States or any foreign country:
(A) Any tangible property brought into this state from time to time or otherwise deemed to have situs in this state for purposes of ad valorem property taxation, and
(B) Any intangible property
held by such person, wherever evidence thereof is situate. In the case of
assessment of such intangible property for ad valorem property taxation after
the first statewide reappraisal only such part thereof as may be determined by
applicable law or regulation to be subject to such taxation shall be
deemed are considered to be situate in this state;
“Value,” “market value” and
“true and actual value” shall have the same meaning and shall mean
the price at or for which a particular parcel or species of property would sell
if it were sold to a willing buyer by a willing seller in an arm's length
transaction without either the buyer or the seller being under any compulsion
to buy or sell: Provided, That in determining value, primary
consideration shall be given to the trends of price paid for like or similar
property in the area or locality wherein such that property is
situate over a period of not less than three nor more than eight years next
preceding the base year and in the case of a farm or farms shall be determined
assuming such the land is being used for farming purposes. In
addition, the commissioner may, for purposes of appraisement of any tract or
parcel of real property, or chattels, real or other species of property, real
or personal, take into account one or more of the following factors: (1) The
location of such the property; (2) its site characteristics; (3)
the ease of alienation thereof, considering the state of its title, the number
of owners thereof, and the extent to which the same property may
be the subject of either dominant or servient easements; (4) the quantity of
size of the property and the impact which its sale may have upon surrounding
properties; (5) if purchased within the previous eight years, the purchase
price thereof and the date of each such purchase; (6) recent sale of, or other
transactions involving comparable property within the next preceding eight
years; (7) the value of such property to its owner; (8) the condition of such
property; (9) the income, if any, which the property actually produces and has
produced within the next preceding eight years; and (10) any commonly accepted
method of ascertaining the market value of any such property, including techniques
and methods peculiar to any particular species of property if such technique or
method is used uniformly and applied to all property of like species.
Notwithstanding any provision of this chapter or code to the contrary, “market value” and “true and actual value”, after the effective date of the amendment of this section in 2022, shall mean the value of all such property in 2019, and that the assessed value of this property may not be greater than the assessed value in 2019.
ARTICLE 3. ASSESSMENTS GENERALLY.
§11-3-1. Time and basis of assessments; true and actual value; default; reassessment; special assessors; criminal penalty.
(a) All property, except public service businesses assessed pursuant to §11-6-1 et seq. of this code, shall be assessed annually as of July 1 at 60 percent of its true and actual value; that is to say, at the price for which the property would sell if voluntarily offered for sale by the owner thereof, upon the terms as the property, the value of which is sought to be ascertained, is usually sold, and not the price which might be realized if the property were sold at a forced sale.
(b) Any conflicting
provisions of subsection (a) of this section notwithstanding, the true and
actual value of all property owned, used and occupied by the owner thereof
exclusively for residential purposes shall be arrived at by also giving
consideration to the fair and reasonable amount of income which the same might
be expected to earn, under normal conditions in the locality wherein situated,
if rented: Provided, That the true and actual value of all farms used,
occupied and cultivated by their owners or bona fide tenants shall be arrived
at according to the fair and reasonable value of the property for the purpose
for which it is actually used regardless of what the value of the property
would be if used for some other purpose; and that the true and actual value
shall be arrived at by giving consideration to the fair and reasonable income
which the same might be expected to earn under normal conditions in the
locality wherein situated, if rented: Provided, however, That nothing
herein shall may alter the method of assessment of lands or
minerals owned by domestic or foreign corporations.
(c) The taxes upon all property shall be paid by those who are the owners thereof on the assessment date whether it be assessed to them or others.
(d) If at any time after the beginning of the assessment year it be ascertained by the Tax Commissioner that the assessor, or any of his or her deputies, is not complying with this provision or that they have failed, neglected or refused, or is failing, neglecting or refusing after five days' notice to list and assess all property therein at 60 percent of its true and actual value as determined under this chapter, the Tax Commissioner shall order and direct a reassessment of any or all of the property in any county, district or municipality where any assessor or deputy fails, neglects or refuses to assess the property in the manner herein provided. And, if the Tax Commissioner has determined that the assessor has not complied or has so failed, neglected or refused to list and assess property as aforesaid for two or more consecutive years, for the purpose of making assessment and correction of values, the Tax Commissioner shall appoint one or more special assessors, unless the Tax Commissioner determines that such appointment should be made earlier, as necessity may require, to make assessment in any county and any such special assessor or assessors, as the case may be, has the power and authority now vested by law in assessors, and the work of such special assessor or assessors shall be accepted and treated for all purposes by the county boards of review and equalization and the levying bodies, subject to any revisions of value on appeal, as the true and lawful assessment of that year as to all property valued by him or her or them. The Tax Commissioner shall fix the compensation of all special assessors appointed, which, together with their actual expenses, shall be paid out of the county fund by the county commission of the county in which any such assessment is ordered, upon the receipt of a certificate of the Tax Commissioner filed with the clerk of the county commission showing the amounts due and to whom payable, after such expenses have been audited by the county commission. All of this subsection is subject to the following:
(1) Notwithstanding any other provision of this subsection to the contrary, if the Tax Commissioner has determined that the assessor has not complied or has so failed, neglected or refused to list and assess property as aforesaid for two consecutive years, but the assessor can show that the criteria established by rule pursuant to this subsection are met, the Tax Commissioner is not required to appoint one or more special assessors pursuant to this section, and in lieu of appointing one or more special assessors, may again order and direct a reassessment of any or all of the property pursuant to this subsection;
(2) For any third or succeeding consecutive year or years that the Tax Commissioner determines that the assessor has not complied or has so failed, neglected or refused to list and assess property as aforesaid, the Tax Commissioner shall appoint one or more special assessors pursuant to the provisions of this subsection regardless of whether or not the assessor can show that he or she will list and assess property as aforesaid the next year; and
(3) For the purposes of determining consecutive years pursuant to this subsection, only tax years beginning on and after the July 1, 2013, assessment date may be considered a first year.
(4) For purposes of subdivision (1) of this subsection, criteria for determining whether the assessor has made a satisfactory showing that he or she will list and assess property as aforesaid for the year next succeeding the two assessment years specified in subdivision (1) of this subsection, the Tax Commissioner shall apply criteria based on: (A) Sales validity; (B) appraisal uniformity; (C) appraisal evaluation; and (D) such other criteria as the Tax Commissioner may prescribe. The Tax Commissioner shall promulgate a legislative rule to specify criteria for the treatment authorized herein for any such third year or succeeding consecutive year or years, and such administrative and procedural requirements and criteria as the Tax Commissioner may prescribe.
(e) Any assessor who
knowingly fails, neglects, or refuses to assess all the property of his or her
county, as herein provided, shall be guilty of malfeasance in office and, upon
conviction thereof, shall be fined not less than $100 nor more than $500, or imprisoned
confined in jail not less than three nor more than six months, or both fined
and confined, in the discretion of the court, and upon conviction,
shall be removed from office.
(f) For purposes of this chapter and Chapter 11A of this code, the following terms have the meanings ascribed to them in this section unless the context in which the term is used clearly indicates that a different meaning is intended by the Legislature:
(1) “Assessment date” means July 1 of the year preceding
the tax year.
(2) “Assessment year” means the 12-month period that
begins on the assessment date.
“Market value” and “true and actual value” mean the value of all such property in 2019.
(3) “Tax year” or “property tax year” means the next
calendar year that begins after the assessment date.
(4) “Taxpayer” means the owner and any other person in
whose name the taxes on the subject property are lawfully assessed.
NOTE: The purpose of this bill is to provide definitions for “market value” and “true and actual value”; and that property taxes may not be appraised and assessed higher than the value in 2019.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.