WVC 11 -
CHAPTER 11. TAXATION.
ARTICLE 6A. POLLUTION CONTROL FACILITIES TAX TREATMENT.
§11-6A-1. Declaration of policy.
It is declared to be the public policy of the state of West
Virginia to maintain reasonable standards of purity and quality of
the water of the state and a reasonable degree of purity of the air
resources of the state. In the exercise of the police power of the
state to protect the environment and promote the public health,
safety and general welfare, the Legislature has enacted the Water
Pollution Control Act as article eleven, chapter twenty-two of this
code and the Air Pollution Control Act as article five, chapter
twenty-two thereof. It is recognized and declared by the
Legislature that pollution control facilities, as hereinafter
defined, are required for the protection and benefit of the
environment and the general welfare of the people, are
nonproductive, do not add to the economic value of a business
enterprise and do not have a market value after installation in
excess of salvage value.
As used in this article, "pollution control facility" means
any personal property designed, constructed or installed primarily
for the purpose of abating or reducing water or air pollution or
contamination by removing, altering, disposing, treating, storing
or dispersing the concentration of pollutants, contaminants, wastes
or heat in compliance with air or water quality or effluent
standards prescribed by or promulgated under the laws of this state
or the United States, the design, construction and installation of
which personal property was approved as a pollution control
facility by either the office of water resources or the office of
air quality, both of the division of environmental protection, as
the case may be.
§11-6A-3. Tax treatment of pollution control facilities.
The value of a pollution control facility first placed in
operation subsequent to July one, one thousand nine hundred
seventy-three, shall, for the purpose of ad valorem property
taxation under this chapter, be deemed to be its salvage value,
that is to say, the price for which such facility would sell in
place if voluntarily offered for sale by the owner thereof.
The state tax commissioner shall have the power and authority
to promulgate regulations for the administration of this article.
Such regulations may provide, among other things, for the
identification and certification of pollution control facilities,
the determination of the date upon which such facilities were first
placed in operation, the determination of whether such facilities
are real or personal property, a method for the allocation or
separation of values where the pollution control facility produces
a profitable by-product or where a part of such facility is
required for the operation of the business without regard to the
requirements of state or federal air or water quality standards and
such other matters as may be related to the administration of this
§11-6A-5. Coal waste disposal power projects.
(a) Notwithstanding any other provisions of this article, a
coal waste disposal power project designed, constructed or
installed to reclaim, burn and dispose of coal wastes in compliance
with applicable air and water quality standards and which meets the
criteria for financing under section twenty-one, article two-c,
chapter thirteen of this code shall, for purposes of section three
of this article, be subject to the provisions of this section.
(b) All items of personal property installed at a coal waste
disposal power project shall be deemed a pollution control facility
for purposes of this article, subject to an allocation of value as
contemplated by section four of this article, as provided by this
subsection. In allocating value, the tax commissioner shall accord
salvage valuation to a portion of the total personal property at
the project. The portion shall be equal to the ratio of tons of
West Virginia coal waste burned and disposed of at the project to
the total tons of coal and coal waste burned and disposed at the
project during the previous calendar year: Provided, That with
respect to a project placed in service prior to the effective date
of this section at which project such ratio for the year ended the
thirty-first day of December, one thousand nine hundred
ninety-four, was less than seventy percent, the tax commissioner
shall award salvage valuation to sixty-three percent of the total
personal property at the project for tax years after the effective
date of this section, notwithstanding the actual ratio for any
calendar year. The remaining portion of the personal property at
the project, but in no event less than twenty-five percent of that total, shall be valued without regard to this article: Provided,
however, That the facility shall not qualify as a pollution control
facility under this subsection if it burns coal, coal waste or fuel
waste from outside the state of West Virginia after the effective
date of this section.
This provisions of this section are not intended to be applied
WVC 11 - 6 A- 5 A
§11-6A-5a. Wind power projects.
(a) Notwithstanding any other provisions of this article, a
power project designed, constructed or installed to convert wind
into electrical energy shall be subject to the provisions of this
(b) Each wind turbine installed at a wind power project and
each tower upon which the turbine is affixed shall be considered to
be personal property that is a pollution control facility for
purposes of this article and, subject to an allocation of the value
of project property determined by the Tax Commissioner in
accordance with this section, all of the value associated with the
wind turbine and tower shall be accorded salvage valuation:
Provided, That the portion of the total value of the facility
assigned salvage value in accordance with this section shall, on
and after the first day of July, two thousand seven, be no greater
than seventy-nine percent of the total value of the facility. All
personal property at a wind power project other than a wind turbine
and tower shall not be accorded salvage valuation and shall not be
considered to be personal property that is a pollution control
facility. For purposes of this section, "wind turbine and tower"
is limited to: The rotor, consisting of the blades and the
supporting hub; the drive train, which includes the remaining
rotating parts such as the shafts, gearbox, coupling, a mechanical
brake and the generator; the nacelle and main frame, including the
wind turbine housing, bedplate and the yaw system; the turbine transformer; the machine controls; the tower; and the tower