The bill amends West Virginia's Code to broaden the exemption from ad valorem property tax for properties used for divine worship. It eliminates the previous stipulation that these properties must be used exclusively for divine worship, now allowing for educational and instructional activities for students from preschool through twelfth grade, as long as they align with the doctrines of the property owner or tenant and are non-profit. Additionally, the bill clarifies that a church's requirement for reimbursement of certain operational expenses will not impact this tax exemption.

Moreover, the legislation introduces a taxation framework for nonprofit organizations that generate unrelated business taxable income, imposing a fee of one and one-quarter percent on gross revenues from specific activities like lodging and retail. It outlines the distribution of these fees to various funds, including the Tourism Promotion Fund and local sheriffs' offices, and mandates periodic studies to assess the tax-exempt status's impact on local business competition. The West Virginia University Bureau of Business and Economic Research, along with the Center for Business and Economic Research at Marshall University, is tasked with conducting a study by January 1, 2020, to evaluate the economic effects of the tax exemption and fee, providing recommendations for its continuation based on its impact on businesses and county finances.

Statutes affected:
Introduced Version: 11-3-9