Bill Text: WV HB4483 | 2022 | Regular Session | Comm Sub
Bill Title: Relating to establishing term limits to certain real property interests and registration requirements associated with carbon offset agreements
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2022-03-12 - On 1st reading, House Calendar [HB4483 Detail]
Download: West_Virginia-2022-HB4483-Comm_Sub.html
WEST virginia legislature
2022 regular session
Committee Substitute
for
House Bill 4483
By Delegates Anderson, J. Kelly, Graves, Ferrell, Holstein, Wamsley, Mandt, Clark, Zatezalo and Howell
[Originating in the Committee on Energy and Manufacturing, February 8, 2022]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto two new sections, designated §11-12-4b and §36-4-20; all relating to real property and registration requirements associated with carbon offset agreements and term limits therefor; defining terms; requiring certain parties to current and new carbon offset agreements to register with the State Tax Department; specifying required registration information and authorizing the State Tax Department to create registration forms through rule-making; requiring periodic updates to registration; requiring reports by Division of Forestry and specifying the minimum content thereof; authorizing disclosure of information by the Tax Commissioner to Division of Forestry; providing legislative findings and declarations; providing that any covenant, restriction, condition, easement, contract, lease, deed, agreement, option, or other governing document, which is executed or recorded after the effective date, which effectively prohibits or restricts the development of land and the harvesting of timber from forests for the purposes of forest carbon capture, carbon offset, and carbon sequestration is void and unenforceable, unless said covenant, restriction, condition, easement, contract, lease, deed, agreement, option, or other governing document is for a maximum term of 40 years or less; and providing that options to renew or continue such arrangements beyond the maximum term of 40 years shall be valid only if the consideration is required to be renegotiated to exercise the option.
Be it enacted by the Legislature of West Virginia:
CHAPTER 11. TAXATION.
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-4b. Parties to carbon offset agreements required to register.
(a) Definitions.
(1) “Carbon offset agreement” means any agreement, whether designated as a carbon capture agreement, carbon sequestration agreement, or otherwise, entered into between an owner of an interest in real estate in West Virginia or an owner of an interest in growing timber in West Virginia, and any other person, entity or company, with the intent of providing payment, compensation or remuneration for the absorption, suppression or containment of carbon dioxide or other greenhouse gases. A carbon offset agreement may be in the form of a lease, easement, protective covenant, option, or otherwise, with the form of the agreement not being determinative of its status as a carbon offset agreement.
(2) “Greenhouse gases” means any of various gaseous or vaporous compounds such as carbon dioxide or methane that absorb infrared radiation and may trap heat in Earth’s atmosphere.
(b) Registration. Any party or parties that enter into a carbon offset agreement, as that term is defined in this section, with a West Virginia landowner, and their assignees of rights, shall apply to the Tax Commissioner for an initial business registration certificate within 60 days of entering into such agreement or within 60 days of the effective date of this section, whichever is later, on forms created through rule-making authority by the State Tax Department. This requirement applies to carbon offset agreements entered on or before the effective date of this section and currently in effect and new carbon offset agreements entered after the effective date of this section. The application for the business registration certificate for carbon offset agreements shall provide the following information:
(1) Legal names, addresses and other contact information of all parties to the carbon offset agreement,
(2) Location of the real estate in West Virginia covered by the carbon offset agreement, including:
(A) Postal address of the property, if available,
(B) Tax parcel or other tax map identifier of the property, and
(C) Any other location information required by the Tax Commissioner;
(3) Term of the agreement in years;
(4) Identification of the carbon offset program with which the agreement is intended to comply;
(5) Identification of any and all restrictions placed on the West Virginia real estate or other property by the carbon offset agreement;
(6) Any other information required by the Tax Commissioner.
(c) The party or parties that enter into a carbon offset agreement with a West Virginia landowner and their assignees of rights shall inform the Tax Commissioner of any changes to the agreement or assignments of rights under the agreement within 60 days of the change or assignment taking effect.
(d) Registration. Notwithstanding any other provision of this code, the party or parties that enter into a carbon offset agreement with a West Virginia landowner and their assignees of rights to a carbon offset agreement shall apply to the Tax Commissioner for a new registration certificate within five years of the effective date of the agreement, and at five-year intervals thereafter, unless the agreement is terminated before that time.
(e) Reporting. Beginning on July 1, 2023, and on or before July 1 of every year thereafter, the Division of Forestry shall submit a report to the Governor and the Joint Committee on Government and Finance setting forth at a minimum the following information:
(1) The number of carbon offset agreements in effect burdening real estate in West Virginia during the preceding calendar year,
(2) The number of acres of real estate in West Virginia burdened by carbon offset agreements during the preceding calendar year,
(3) The amount of money paid to West Virginia landowners under carbon offset agreements during the preceding calendar year.
(f) Information disclosure. Notwithstanding the provisions of §11-10-5d of this code and notwithstanding any other provision of this code, the Tax Commissioner is authorized to disclose to the Division of Forestry such registration information and other information in the possession of the Tax Division as may be necessary for the Division of Forestry to compile the report required under this section.
CHAPTER 36. ESTATES AND PROPERTY.
ARTICLE 4. COVENANTS.
§36-4-20. Certain forest carbon capture and sequestration covenants and restrictions void and unenforceable; penalty.
(a) The Legislature finds and declares that it is the policy of the state to promote and encourage land development, forest management and timber harvesting for the economic benefit of the citizens of this state. The Legislature finds and declares that private landowners must be allowed to preserve the character and use of land as forest land but also allow future landowners to make decisions which allow for land development and timber harvesting.
(b) Any covenant, restriction, condition, easement, contract, lease, deed, agreement, option, or other governing document, which is executed or recorded after the effective date of this section, which effectively prohibits or restricts the development of land or the harvesting of timber from forests with the intent and purposes of forest carbon capture, carbon offsets, or carbon sequestration is void and unenforceable, unless said covenant, restriction, condition, easement, contract, lease, deed, agreement, option, or other governing document is for a maximum term of 40 years or less: Provided, That options to renew or continue such arrangements beyond the maximum term of 40 years, shall be valid only if the consideration is required to be renegotiated to exercise the option.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.
