WEST virginia legislature

2017 regular session

Originating

Senate Bill 692

By Senators Hall, Mullins, Blair, Boley, Boso, Ferns, Gaunch, Mann, Maroney, Sypolt, Takubo, Facemire, Palumbo, Plymale, Prezioso, Stollings and Unger

[Originating in the Committee on Finance; Reported on March 27, 2017]

A BILL to amend and reenact §11-1C-11 of the Code of West Virginia, 1931, as amended, relating to authorizing a fee to be imposed and collected on managed timberland and timberland or farm woodlot; establishing a new special revenue account, designated the Volunteer and Part-Volunteer Fire Departments Fee Fund; providing that the fees collected be deposited into the Volunteer and Part-Volunteer Fire Departments Fee Fund; providing that an amount in the fund be deposited into the Volunteer Fire Department Workers’ Compensation Subsidy Program; providing that the remaining balance in the fund be distributed among the volunteer fire departments in the counties of West Virginia; and authorizing the Tax Commissioner to promulgate rules.

Be it enacted by the Legislature of West Virginia:

That §11-1C-11 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 1C. FAIR AND EQUITABLE PROPERTY VALUATION.

§11-1C-11. Managed timberland; findings, purposes and declaration of legislative intent; implementation; inspection and determination of qualification; imposition of fire protection fee to supplement volunteer fire departments.

(a) The Legislature finds and declares that the public welfare is enhanced by encouraging and sustaining the abundance of high quality forest land within the state; that economic pressures may force industrial, residential or other land development inconsistent with sustaining the forests; and that tax policy should provide an incentive for private owners of forest land to preserve the character and use of land as forest land and to make management decisions which enhance the quality of the future forest.

(b) In exercising the authority granted by the provisions of section fifty-three, article VI of the Constitution of West Virginia, the Legislature makes the following declarations of its intent:

(1) Notwithstanding the provisions of section twenty-four, article three of this chapter, timberland certified by the Division of Forestry as managed timberland shall be valued as managed timberland as provided in this article when it is managed under a cooperative contract with the Division of Forestry and the certification has not been surrendered by the owner of the property or revoked by the director of the Division of Forestry.

The Division of Forestry shall, at the time of contracting, notify the owner that the owner shall incur a penalty as set forth in section five-a, article three of this chapter if the owner fails to provide written notice to the county assessor of a change in use of the managed timberland.

(2) Property certified as managed timberland which prior to certification is properly taxed in Class II, as defined in section five, article eight of this chapter and section one, article X of the Constitution of West Virginia, may not be reclassified to Class III or Class IV, as defined in section five, article eight of this chapter, merely because the property is certified as managed timberland unless there is some other event or change in the use of the property that disqualifies it from being taxed in Class II.

(c) To aid the Legislature in assessing the impact of the managed timberland program on the State of West Virginia, the Division of Forestry and the Tax Commissioner, on or before December 31, 2001, and on December 31 each year thereafter, shall report in writing to the Joint Committee on Government and Finance of the Legislature or its designated subcommittee. The Tax Commissioner shall include in his or her report a complete and accurate assessment of the impact of the managed timberland program on the tax collections of the state, including projected increases or decreases in tax collection. The Division of Forestry shall include in its report detailed information on the number of acres designated as managed timberland and any identified impacts of the program on the state’s timber industry.

(d) There is created within the State Treasury a special revenue fund, designated the Volunteer and Part-Volunteer Fire Departments Fee Fund, to be administered by the State Treasurer. It shall consist of moneys from fees collected pursuant to subsection (e) of this section. 

(e) To provide additional revenue for volunteer fire departments and part-volunteer fire departments, there is hereby authorized and imposed on and after July 1, 2017, and each year thereafter on each acre designated as managed timberland, the Tax Commissioner shall collect a $1.50 fire protection fee and on each acre of timberland or farm woodlot, a $0.50 fire protection fee. The money collected from these fire protection fees shall be deposited into the Volunteer and Part-Volunteer Fire Departments Fee Fund.

(f) Moneys collected into the Volunteer and Part-Volunteer Fire Departments Fee Fund shall be distributed annually as follows:

(1) $4,500,000 shall be deposited into the Volunteer Fire Department Workers’ Compensation Subsidy Program administered by the State Auditor and established by section fourteen-a, article four, chapter twelve of this code;

(2) Fifty percent of the remaining balance collected shall be distributed to the volunteer fire departments in counties where the fire protection fee originated; and

(3) The remaining balance shall be distributed to the volunteer fire departments in counties from which the fire protection fee was collected on a pro rata share, based upon both taxable and nontaxable certified real property valuation within the state.

(g) The Tax Commissioner is authorized to promulgate rules, pursuant to article three, chapter twenty-nine-a of this code, to carry out the requirements of this section.

NOTE: The purpose of this bill is to impose a fire protection fee on managed timberlands, timberlands or farm woodlots to be used to help fund volunteer fire departments, supplement their workers’ compensation premiums, and to fund the counties based on their pro rata share of property taxes.

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