The bill amends the Code of West Virginia, specifically section 11-3-9, to introduce a new tax exemption for real property used for farming. This exemption is applicable to owner-farmers who reside on the property and derive at least 40 percent of their income from farming activities. The new legal language added to the existing law specifies that real property and structures used for farming will be exempt under these conditions, while the previous item related to property exemptions has been deleted and renumbered. The bill also retains existing provisions for other types of property exempt from taxation, such as those owned by government entities and nonprofit organizations, and emphasizes that properties purchased to evade taxation will not qualify for exemption.

In addition to providing tax relief to qualifying farmers, the bill mandates a comprehensive report to assess the economic impact of this tax exemption on the county and surrounding region. This report will analyze potential unfair business competition arising from nonprofit status and include an audit of the county's use of net revenues. The West Virginia University Bureau of Business and Economic Research, in collaboration with the Center for Business and Economic Research at Marshall University, is responsible for conducting this study and will provide recommendations regarding the continuation of the tax exemption and fee by January 1, 2020.

Statutes affected:
Introduced Version: 11-3-9