This bill amends the Code of West Virginia, specifically section 11-3-9, to introduce a new tax exemption for real property used for farming. The 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 situate on the property used for farming, if the owner-farmer resides on the real property and receives at least 40 percent of his or her income from the farm." This addition is designated as item (30) in the list of properties exempt from taxation, while the previous item (30) has been renumbered to (31).

In addition to establishing the new farming exemption, the bill retains existing provisions for other types of property exempt from taxation, such as those owned by government entities, educational institutions, and nonprofit organizations. It also includes a stipulation that properties purchased to evade taxation will not qualify for exemption. Furthermore, the bill mandates a comprehensive report to evaluate the economic impact of the tax exemption on the county and surrounding areas, addressing issues like unfair business competition related to nonprofit status. This study will be conducted by the West Virginia University Bureau of Business and Economic Research in collaboration with the Center for Business and Economic Research at Marshall University, with recommendations due by January 1, 2020.

Statutes affected:
Introduced Version: 11-3-9