§11-3-9. Property exempt from taxation.
(a) All property, real and
personal, described in this subsection, and to the extent limited by this
section, is exempt from taxation:
(1) Property belonging to
the United States, other than property permitted by the United States to be
taxed under state law;
(2) Property belonging
exclusively to the state;
(3) Property belonging
exclusively to any county, district, city, village or town in this state and
used for public purposes;
(4) Property located in
this state belonging to any city, town, village, county or any other political
subdivision of another state and used for public purposes;
(5) Property used
exclusively for divine worship;
(6) Parsonages and the
household goods and furniture pertaining thereto;
(7) Mortgages, bonds and
other evidence of indebtedness in the hands of bona fide owners and holders
hereafter issued and sold by churches and religious societies for the purposes
of securing money to be used in the erection of church buildings used
exclusively for divine worship or for the purpose of paying indebtedness
thereon;
(8) Cemeteries;
(9) Property belonging to,
or held in trust for, colleges, seminaries, academies and free schools, if used
for educational, literary or scientific purposes, including books, apparatus,
annuities and furniture;
(10) Property belonging to,
or held in trust for, colleges or universities located in West Virginia, or any
public or private nonprofit foundation or corporation which receives
contributions exclusively for such college or university, if the property or
dividends, interest, rents or royalties derived therefrom are used or devoted
to educational purposes of such college or university;
(11) Public and family
libraries;
(12) Property used for
charitable purposes and not held or leased out for profit;
(13) Property used for the
public purposes of distributing electricity, water or natural gas or providing
sewer service by a duly chartered nonprofit corporation when such property is
not held, leased out or used for profit;
(14) Property used for area
economic development purposes by nonprofit corporations when the property is
not leased out for profit;
(15) All real estate not
exceeding one acre in extent, and the buildings on the real estate, used
exclusively by any college or university society as a literary hall, or as a
dormitory or clubroom, if not used with a view to profit, including, but not
limited to, property owned by a fraternity or sorority organization affiliated
with a university or college or property owned by a nonprofit housing
corporation or similar entity on behalf of a fraternity or sorority
organization affiliated with a university or college, when the property is used
as residential accommodations or as a dormitory for members of the
organization;
(16) All property belonging
to benevolent associations not conducted for private profit;
(17) Property belonging to
any public institution for the education of the deaf, intellectually disabled
or blind or any hospital not held or leased out for profit;
(18) Houses of refuge and
mental health facility or orphanage;
(19) Homes for children or
for the aged, friendless or infirm not conducted for private profit;
(20) Fire engines and
implements for extinguishing fires, and property used exclusively for the
safekeeping thereof, and for the meeting of fire companies;
(21) All property on hand
to be used in the subsistence of livestock on hand at the commencement of the
assessment year;
(22) Household goods to the
value of $200, whether or not held or used for profit;
(23) Bank deposits and
money;
(24) Household goods, which
for purposes of this section means only personal property and household goods
commonly found within the house and items used to care for the house and its
surrounding property, when not held or used for profit;
(25) Personal effects,
which for purposes of this section means only articles and items of personal
property commonly worn on or about the human body or carried by a person and
normally thought to be associated with the person when not held or used for
profit;
(26) Dead victuals laid
away for family use;
(27) All property belonging
to the state, any county, district, city, village, town or other political
subdivision or any state college or university which is subject to a lease
purchase agreement and which provides that, during the term of the lease
purchase agreement, title to the leased property rests in the lessee so long as
lessee is not in default or shall not have terminated the lease as to the
property;
(28) Personal property,
including vehicles that qualify for a farm use exemption certificate pursuant
to section two, article three, chapter seventeen-a of this code and livestock,
employed exclusively in agriculture, as defined in article ten, section one of
the West Virginia Constitution: Provided, That this exemption only
applies in the case of such personal property used on a farm or farming
operation that annually produces for sale agricultural products, as defined in
rules of the Tax Commissioner;
(29) Real property owned by
a nonprofit organization whose primary purpose is youth development by means of
adventure, educational or recreational activities for young people, which real
property contains a facility built with the expenditure of not less than $100
million that is capable of supporting additional activities within the region
or the state and which is leased or used to generate revenue for the nonprofit
organization whether or not the property is used by the nonprofit organization
for its nonprofit purpose, subject to the requirements, limitations and
conditions set forth in subsection (h) of this section; and
(30) All property
belonging to a military veteran with a one hundred percent service related disability;
and
(30) (31) Any other property or security exempted
by any other provision of law.
(b) Notwithstanding the
provisions of subsection (a) of this section, no property is exempt from
taxation which has been purchased or procured for the purpose of evading
taxation whether temporarily holding the same over the first day of the
assessment year or otherwise.
(c) Real property which is
exempt from taxation by subsection (a) of this section shall be entered upon
the assessor's books, together with the true and actual value thereof, but no
taxes may be levied upon the property or extended upon the assessor's books.
(d) Notwithstanding any
other provisions of this section, this section does not exempt from taxation
any property owned by, or held in trust for, educational, literary, scientific,
religious or other charitable corporations or organizations, including any
public or private nonprofit foundation or corporation existing for the support
of any college or university located in West Virginia, unless such property, or
the dividends, interest, rents or royalties derived therefrom, is used
primarily and immediately for the purposes of the corporations or
organizations.
(e) The Tax Commissioner
shall, by issuance of rules, provide each assessor with guidelines to ensure
uniform assessment practices statewide to effect the intent of this section.
(f) Inasmuch as there is
litigation pending regarding application of this section to property held by
fraternities and sororities, amendments to this section enacted in the year
1998 shall apply to all cases and controversies pending on the date of such
enactment.
(g) The amendment to
subdivision (27), subsection (a) of this section, passed during the 2005
regular session of the Legislature, shall apply to all applicable lease
purchase agreements in existence upon the effective date of the amendment.
(h) Nonprofit youth
organization exemption - Limitations, Conditions, Collection and administration
of one and one quarter percent fee, limitations and distribution of moneys.
(1) The exemption from ad
valorem taxation provided pursuant to the provisions of subdivision (29),
subsection (a) of this section does not apply to a property owned by a
nonprofit organization otherwise qualifying for the exemption but which
property or facilities are used for-profit or outside the primary purpose of
the owner which result in unrelated business taxable income as defined by
Section 512 of the Internal Revenue Code of 1986, as amended, unless the income
is generated by an activity upon which the one and one quarter percent fee
authorized by subdivision (2) of this section is applied as provided in
subdivision (3) of this subsection.
(2) The owner of real
property exempt from ad valorem taxation under subdivision (29), subsection (a)
of this section shall pay an amount equal to one and one quarter percent of the
gross revenues the owner receives in accordance with this subsection. For
purposes of this subsection, "gross revenues" means the gross amount
received by the owner as payment for use of the property or the facilities
thereon.
(3) Gross revenues derived
from the following facilities, uses, activities and operations are subject to a
fee of one and one quarter percent of such gross revenues:
(A) Gross revenues derived
from the use of lodging and campground facilities by persons participating in
meetings and multiday spectator sports or multiday recreational, celebratory or
ceremonial events held on-site where on-site lodging or camping is offered as
part of the program. For purposes of this section the term "meeting"
means, and is limited to, a gathering, assembly or conference of two or more
persons who have deliberately convened at a single specific location at a
single specified time and date for a common specific purpose.
(B) Gross revenues derived
from any retail store located at the facility that is open only to those
persons who are attending meetings, spectator sports, recreational, celebratory
or ceremonial events held on-site at the facility.
(C) Gross revenues derived
from operations of gift shops at a welcome or information center located
adjacent to a public highway operated by the nonprofit organization which is
open to the general public.
(D) Gross revenues derived
from the leasing of zip-lines, canopy tours, wheeled sports and climbing
facilities used by the general public on a for-profit basis (i) Under a written
agreement with a licensed commercial outfitter operating a business utilizing
zip-lines, canopy tours, wheeled sports or climbing areas of a similar nature
in the same or an adjacent county where the facilities are located; and (ii)
When the property or facilities are used as part of a training or advanced
experience offered by the licensed commercial outfitter.
(E) Gross revenues derived
from the use or operation of zip-lines, canopy tours, wheeled sports facilities
or activities, climbing facilities or activities and the use or operation of
other sporting facilities on the exempt property that are leased on a
for-profit basis for spectator events, such as concerts, spectator sporting
events or exhibitions or similar mass gathering events.
(F) Gross revenues derived
from leases or agreements for use of the property for meetings and mulitday
spectator sports or events or multiday recreational, celebratory or ceremonial
events, held on site.
(4) Notwithstanding any
other provision of this section to the contrary, programs or activities
occuring on the property or its facilities held in conjunction with a
government organization or sponsored by other nonprofit organizations serving
youth, veterans, military services, public service agencies including, fire,
police, emergency and search and rescue services, government agencies, schools
and universities, health care providers and similar organizations or groups
which are designed to provide opportunities for learning or training in the
areas of leadership, character education, science, technology, engineering,
arts and mathematics (STEAM) programs, physical challenges, sustainability,
conservation and outdoor learning shall be considered a charitable or nonprofit
use for the purposes of this section and not subject to the one and one quarter
percent fee.
(5) Notwithstanding any
other provision of this section to the contrary, activities open to the public
through individual visitor passes allowing tours and access to the property and
its facilities for the purpose of viewing or participating in demonstrations,
programs and facilities providing information and experiences consistent with
the owner's nonprofit purposes where zip-lines, canopy tours, wheeled sports or
climbing facilities are merely components of the demonstrations, programs and
facilities used shall be considered a charitable or nonprofit use for the
purposes of this section and not subject to the one and one quarter percent
fee: Provided, That such individual visitor passes may not include the
rental or use of on-site overnight lodging or camping facilities.
(6) Administration –
(A) The sheriff of the
county wherein the majority of the acreage of the property is located as
specified in the deed to such property, shall collect, on a monthly basis, all moneys
derived from the fee of one and one quarter percent of the gross revenues
imposed under this subsection.
(B) The sheriff of the
county wherein the majority of the acreage of the property is located as
specified in the deed to such property, shall prescribe such forms and
schedules as may be necessary for the efficient, accurate, and expeditious
payment and reporting of the one and one quarter percent fee specified in this
subsection on gross revenues.
(C) The sheriff of the
county wherein the majority of the acreage of the property is located as
specified in the deed to such property, shall administer the fee imposed under
this subsection, including refunds and adjustments.
(D) Payment, administration
and compliance of fee payers and administrators shall be subject to audit by
the Office of Chief Inspector.
(E) All moneys
moneys so collected, net of refunds and adjustments, shall be paid into a
special account in the State Treasury, which is hereby created, and the amount
thereof shall be distributed and paid annually, by the State Treasurer, on
October 1 of each year, into the funds and to the distributees specified in
subdivision (7) of this subsection in the amounts specified therein.
(7) Distribution –
(A) Twenty-five percent of moneys
moneys so collected, net of refunds and adjustments, shall be paid annually
to the Tourism Promotion Fund established pursuant to section twelve, article
two, chapter five-b of this code.
(B) Twenty-five percent of monies
moneys so collected, net of refunds and adjustments, shall be paid
annually to the sheriff of the county where the property is located which, but
for the exemption provided in subdivision (29), subsection (a) of this section,
would be entitled to receive ad valorem taxes on the property. The sheriff
shall treat all such payments in the same manner as payments in lieu of taxes,
and such payments are subject to the adjustment mandated under section twelve,
article nine-a, chapter eighteen of this code. For properties located in more
than one county, the amount paid to the sheriff of the county shall be in
proportion to the total number of acres located in each county at the close of
the fiscal year, as specified in the deed to such property.
(C) Fifty percent of monies
moneys so collected, net of refunds and adjustments, shall be divided
equally and paid annually into separate accounts established and maintained by
the sheriffs of the county or counties wherein the property is located and the
sheriffs of any other county that is within the jurisdiction of the same
economic development authority as the county or counties wherein the property
is located to be used solely for the establishment and delivery of a science,
technology, engineering, art and math (STEAM) program in conjunction with the
owner of the exempt property. The funds shall be divided equally for use in
each county and the programs must be approved by the respective county
superintendents of schools. Expenditures from the accounts shall be authorized
by the county superintendent of schools.
(8) If lodging is furnished
as part of a retreat, meeting, or multiday spectator sport or event being held
on-site wherein on-site lodging or camping is offered as part of the program,
any applicable hotel occupancy tax and state and local consumers sales and
service tax and use tax shall be paid based upon the actual location of such
lodging.
(9) If merchants are
allowed to do business on the property, the owner or lessee of the property
shall offer space to local merchants on terms at least as favorable as are
offered to other merchants.
(10) For the purposes of
this subsection, owner includes the owner holding record title to the property
and its affiliates to the extent they are commonly owned, controlled or have
the power to appoint the governing body of the affiliate.
(11) The Tourism Commission
shall include in its annual report submitted to the Governor and the
Legislature a summary of funds paid into the Tourism Promotion Fund and
recommendations pertaining to the administration of this section.
(12) This subsection may
not be construed to prohibit the owner of property otherwise subject to this
section from having portions of the property severed from the remainder of the
property, assessed and taxed as if nonexempt and thereafter conducting business
on such property the same as any other nonexempt property: Provided,
That the area of property to be severed shall be approved by the county commission
wherein the property lies so as to include in the severance all property
substantially supporting the for profit or business activity giving rise to the
specific purpose of the severance and excluding all property entitled to the
continued benefits of this Act.
(i) To assure the
implementation of subsection (h) of this section does not harm local and
regionally located businesses by use of the tax exempt facility in a manner
that cause unfair competition and unreasonable loss of revenue to those
businesses, studies shall be periodically conducted to assure that further
legislation is in order regarding the uses of the tax exempt facility. The
County commission of any county where such a property is located shall report
to the Joint Committee on Government and Finance by the first day of January
every five years after the effective date of this section. The report shall
include information on any unfair business competition resulting from the
establishment of the nonprofit status, and include a report of the costs and
benefits to its county of the tax exemption and associated fee, including an
audit of that county's use of the net revenues. The West Virginia University
Bureau of Business and Economic Research in coordination of the Center for
Business and Economic Research at Marshall University, by January 1, 2020,
shall undertake a study and report to the Committee, the economic impact of
this tax exemption and fee to the county and that region of the state, and make
any recommendations regarding the benefits and disadvantages for continuing the
provision of this tax exemption and fee, included, but not limited to, the
impacts to other small and large businesses in the county, the costs to the
county has incurred as a result of use of the facility, and any other relevant
data that the universities may deem relevant.
WEST virginia legislature