This bill amends West Virginia's property tax exemption laws, specifically section 11-3-9, to broaden the definition of property exempt from ad valorem property tax. It expands the exemption to include all property used for divine worship, as well as portions of those properties utilized for educational and charitable purposes. The bill removes the previous stipulation that such properties must be used exclusively for divine worship and educational operations, allowing for a wider range of community-supporting activities. The new language clarifies that properties used for divine worship can also engage in educational and other nonprofit activities while still preserving exemptions for properties primarily dedicated to divine worship.

Additionally, the bill establishes a framework for nonprofit organizations that own exempt properties, which includes a fee structure based on gross revenues from certain activities on the property. These fees will be allocated to various funds, such as the Tourism Promotion Fund and local sheriffs' offices, to offset the impact of tax exemptions on local revenues. The legislation mandates periodic studies to evaluate the tax-exempt status's effects on local business competition and requires a comprehensive report every five years to assess the implications of these exemptions. By January 1, 2020, West Virginia University and Marshall University are tasked with studying the economic impact of the tax exemption and associated fees, focusing on their effects on local businesses and county costs.

Statutes affected:
Introduced Version: 11-3-9