Senate Bill No. 745
(By Senators Jenkins and Plymale)
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[Introduced February 18, 2008; referred to the Committee on
Health and Human Resources; and then to the Committee on
Finance.]
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A BILL to amend and reenact §11-4-3 of the Code of West Virginia,
1931, as amended, relating to the definitions of "qualified
continuing care retirement community" and "designated common
areas".
Be it enacted by the Legislature of West Virginia:
That §11-4-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 4. ASSESSMENT OF REAL PROPERTY.
§11-4-3. Definitions.
(a) For the purpose of giving effect to the Tax Limitations
Amendment, this chapter shall be interpreted in accordance with the
following definitions, unless the context clearly requires a
different meaning:
(1) "Owner" means the person, as defined in section ten, article two, chapter two of this code, who is possessed of the
freehold, whether in fee or for life. A person seized or entitled
in fee subject to a mortgage or deed of trust securing a debt or
liability is considered the owner until the mortgagee or trustee
takes possession, after which the mortgagee or trustee
shall be is
considered the owner. A person who has an equitable estate of
freehold, or is a purchaser of a freehold estate who is in
possession before transfer of legal title is also considered the
owner. Owner shall also include the corporation or other
organization possessed of the freehold of a qualified continuing
care retirement community.
(2) "Used and occupied by the owner thereof exclusively for
residential purpose" means actual habitation by the owner or the
owner's spouse, or a qualified resident of all or a portion of a
parcel of real property as a place of abode to the exclusion of any
commercial use:
Provided, That if the parcel of real property was
unoccupied at the time of assessment and either: (A) Was used and
occupied by the owner thereof exclusively for residential purposes
on the first day of July of the previous year assessment date; (B)
was unimproved on the first day of July of the previous year but a
building improvement for residential purposes was subsequently
constructed thereon between that date and the time of assessment;
or (C) is retained by the property owner for noncommercial purposes
and was most recently used and occupied by the owner or the owner's spouse as a residence and the owner, as a result of illness,
accident or infirmity, is residing with a family member or is a
resident in a nursing home, personal care home, rehabilitation
center or similar facility, then the property shall be considered
"used and occupied by the owner thereof exclusively for residential
purpose":
Provided, however, That nothing herein contained shall
permit an unoccupied or unimproved property to be considered "used
and occupied by the owner thereof exclusively for residential
purposes" for more than one year unless the owner, as a result of
illness, accident or infirmity, is residing with a family member or
is a resident of a nursing home, personal care home, rehabilitation
center or similar facility. Except in the case of a qualified
continuing care retirement community, if a license is required for
an activity on the premises or if an activity is conducted thereon
which involves the use of equipment of a character not commonly
employed solely for domestic as distinguished from commercial
purposes, the use may not be considered to be exclusively
residential. In the case of a qualified continuing care retirement
community, uses attendant to the functioning of the qualified
continuing care retirement community, including, without
limitation, cafeteria, laundry, personal and health care services,
shall not be considered a commercial use even if such activity or
equipment requires a separate license or payment.
(3) "Family member" means a person who is related by common ancestry, adoption or marriage including, but not limited to,
persons related by lineal and collateral consanguinity.
(4) "Farm" means a tract or contiguous tracts of land used for
agriculture, horticulture or grazing and includes all real property
designated as "wetlands" by the United States Army Corps of
Engineers or the United States Fish and Wildlife Service.
(5) "Occupied and cultivated" means subjected as a unit to
farm purposes, whether used for habitation or not, and although
parts may be lying fallow, in timber or in wastelands.
(6) "Qualified continuing care retirement community" means a
continuing care retirement community: (A) Owned by a corporation
or other organization exempt from federal income taxes under the
Internal Revenue Code; (B) used in a manner consistent with the
purpose of providing housing and health care for residents;
and (C)
which receives no Medicaid funding under the provisions of article
four-b, chapter nine of this code;
and (D) which submits a written
authorization to the applicable county assessor agreeing that the
continuing care retirement community's designated common areas, and
only the designated common areas may be taxed at the rate
applicable to Class IV under section five, article eight, chapter
eleven of this code, instead of the rate applicable to the Class II
classification. For purposes of this section, a continuing care
retirement community is a licensed facility under the provisions of
articles five-c and five-d, chapter sixteen of this code at which independent living, assisted living and nursing care, if necessary,
are provided to qualified residents.
"Qualified resident" means a person who contracts with a
qualified continuing care retirement community to reside therein,
in exchange for the payment of an entrance fee or deposit, or
payment of periodic charges, or both.
(7) "Designated common areas" for purposes of subdivision (6)
means those portions of the qualified continuing care retirement
community building(s) which are used for: (A) Administrative
offices; and (B) cafeterias, meeting rooms, libraries, shops and
other such group assembly rooms for the benefit of independent
living residents.
(b)
Effective date of amendments. -- Amendments to this
section enacted during the regular session of the Legislature in
the year two thousand six shall have retroactive effect to and
including the first day of July, two thousand five, and shall apply
in determining tax for tax years beginning the first day of
January, two thousand six, and thereafter.
Effective date of amendments. -- Amendments to this section
enacted during the regular session of the Legislature in the year
two thousand seven shall take effect on the first day of July, two
thousand seven.
Effective date of amendments. -- Amendments to this section
enacted during the regular session of the Legislature in the year two thousand eight shall take effect on the first day of July, two
thousand eight.
NOTE: The purpose of this bill is related to definitions of
qualified continuing care retirement community and designated
common areas.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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