Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                  ENROLLED
             Senate Bill 149
    By Senators Roberts, Trump, Phillips, Deeds,
  Azinger, Stuart, Clements, Maynard, Maroney, and Karnes [Passed March 09, 2023; in effect 90 days from passage]
     Enr SB 149
  AN ACT to amend and reenact §11-3-9 of the Code of West Virginia, 1931, as amended, relating
         to exempt property from taxation used exclusively for divine worship and the operation of a
         pre-K school, primary school, middle school, secondary school, daycare center, or church
         camp for children, which school, daycare center, or church camp is operated by the church
         which owns the property or is operated by another not-for-profit organization or entity.
     Be it enacted by the Legislature of West Virginia:
     ARTICLE                     3.                   ASSESSMENTS                          GENERALLY.
     §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, or used exclusively for divine worship and
 the operation of a pre-K school, primary school, middle school, secondary school, daycare center,
 or church camp for children, which school, daycare center, or church camp is operated by the
 church which owns the property or is operated by another not-for-profit organization or entity;
        (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;
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        (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;
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        (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 §17A-3-2 of this code and livestock, employed exclusively in agriculture, as defined in
 article X, 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,
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 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 §11-3-9(h) of this code; and
        (30) Any other property or security exempted by any other provision of law.
        (b) Notwithstanding the provisions of §11-3-9(a) of this code, 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 §11-3-9(a) of this code 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 affect 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 §11-3-9(a)(27) of this code, 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.
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          (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 §11-3-
 9(a)(29) of this code 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 §11-3-9(h)(2) of this
 code is applied as provided in §11-3-9(h)(3) of this code.
         (2) The owner of real property exempt from ad valorem taxation under §11-3-9(a)(29) of
 this code 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 onsite where onsite 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 onsite at the facility.
         (C) Gross revenues derived from operations of gift shops at a welcome or information
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 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 multiday spectator sports or events or multiday recreational, celebratory, or ceremonial
 events, held onsite.
         (4) Notwithstanding any other provision of this section to the contrary, programs or
 activities occurring 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
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 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 onsite 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 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 of this code in the amounts specified therein.
        (7) Distribution. —
        (A) Twenty-five percent of moneys so collected, net of refunds and adjustments, shall be
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 paid annually to the Tourism Promotion Fund established pursuant to §5B-2-12 of this code.
        (B) Twenty-five percent of 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 §11-3-9(a)(29) of this code, 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 §18-9A-12 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 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