Bill Text: WV HCR58 | 2020 | Regular Session | Introduced
Bill Title: Requesting a study of the state Tax Commissioner's methodology for valuing and assessing active and reserve coal properties for the purpose of ad valorem taxes
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2020-02-03 - To House Finance [HCR58 Detail]
Download: West_Virginia-2020-HCR58-Introduced.html
HOUSE CONCURRENT RESOLUTION 58
(By Delegates Hanshaw (Mr. Speaker), Householder, Anderson, Criss, J. Kelly, D. Kelly, Kessinger and Hill)
[Introduced February 3, 2020]
Requesting the Joint Standing Committee on Finance study the state Tax Commissioner’s methodology for valuing and assessing active and reserve coal properties for the purpose of ad valorem taxes.
Whereas, Article X, Section 1 of the West Virginia Constitution states that: “Taxation shall be equal and uniform throughout the state, and all property, both real and personal, shall be taxed in proportion to its value to be ascertained as directed by law”;
Whereas, The right to equal protection of the laws is guaranteed by the United States and West Virginia Constitutions;
Whereas, State law, §11-6K-1(a) of this code, requires that properties be assessed at their “true and actual value” and states that: “All industrial property and natural resources property shall be assessed annually as of the assessment date at 60 percent of its true and actual value”;
Whereas, The Legislature expressed its intent for the state statutory taxation scheme by stating in §11-1C-1(a) of this code that: “The Legislature hereby finds and declares that all property in this state should be fairly and equitably valued wherever it is situated so that all citizens will be treated fairly and no individual species or class of property will be overvalued or undervalued in relation to all other similar property within each county and throughout the state”;
Whereas, §11-1C-10 of this code directs that the Tax Commissioner shall develop a plan for the valuation of natural resources property, and to “maintain accurate values for all such property”;
Whereas, The regulations for valuation of active and reserve coal properties for ad valorem tax purposes are contained in the Code of States Rules §110-1I-1 et seq., and expressly provide that the rule: “clarifies and implements state law as it relates to the appraisal at market value of active and reserve coal properties”;
Whereas, In the absence of legislative direction as to what elements are to be considered by an agency in promulgating a rule, there is a presumption that the Legislature is entrusting the decision as to what to consider in the hands of the agency in deference to agency experts;
Whereas, In a 2019 decision of the Supreme Court of Appeals in West Virginia, the court determined that the regulations governing the method of valuing active and reserve coal properties, a technical and complex process that utilizes the historical trailing or rolling three-year average of actual sales, are a rational and necessary means to establish true and actual value for purposes of ad valorem taxes; and
Whereas, In that same decision, the court recognized that other methods of calculating the taxable interest in coal resources exist and encouraged the ongoing evaluation of these methodologies by the Tax Commissioner, the Legislature and stakeholders; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Standing Committee on Finance is hereby requested to study the state Tax Commissioner’s methodology for valuing and assessing active and reserve coal properties for the purpose of calculating ad valorem taxes; and, be it
Further Resolved, That the Joint Standing Committee on Finance report to the regular session of the Legislature, 2021, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report, and to draft necessary legislation be paid from legislative appropriations to the Joint Standing Committee on Finance.
