COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 344
(By Senators Prezioso, D. Facemire, Unger, Foster, Jenkins,
McCabe, Stollings, Plymale and Klempa)
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[Originating in the Committee on Finance;
reported February 18, 2011.]
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A BILL to amend and reenact §11-6F-2 and §11-6F-3 of the Code of
West Virginia, 1931, as amended, all relating to reducing the
required original cost of manufacturing facilities and
reducing the required cost of the capital addition when
determining eligibility for the special method for appraising
such property; and excluding unimproved real property from the
measure of the certified capital addition property.
Be it enacted by the Legislature of West Virginia:
That §11-6F-2 and §11-6F-3 of the Code of West Virginia, 1931,
as amended, be amended and reenacted, all to read as follows:
ARTICLE 6F. SPECIAL METHOD FOR APPRAISING QUALIFIED CAPITAL
ADDITIONS TO MANUFACTURING FACILITIES.
§11-6F-2. Definitions.
As used in this article, the term:
(a) "Certified capital addition property" means all real
property and personal property included within or to be included
within a qualified capital addition to a manufacturing facility
that has been certified by the State Tax Commissioner in accordance
with section four of this article:
Provided, That airplanes and
motor vehicles licensed by the Division of Motor Vehicles shall in
no event constitute certified capital addition property.
(b) "Manufacturing" means any business activity classified as
having a sector identifier, consisting of the first two digits of
the six-digit North American Industry Classification System code
number of thirty-one, thirty-two or thirty-three or the six digit
code number 211112.
(b) (c) "Manufacturing facility" means any factory, mill,
chemical plant, refinery, warehouse, building or complex of
buildings, including land on which it is located, and all
machinery, equipment, improvements and other real property and
personal property located at or within the facility used in
connection with the operation of the facility in a manufacturing
business.
(c) (d) "Personal property" means all property specified in
subdivision (q), section ten, article two, chapter two of this code
and includes, but is not limited to, furniture, fixtures, machinery
and equipment, pollution control equipment, computers and related
data processing equipment, spare parts and supplies.
(d) (e) "Qualified capital addition to a manufacturing
facility" means all real property and personal property, the combined original cost of all of the property which exceeds $50
million to be constructed, located or installed at or within two
miles of a manufacturing facility owned or operated by the person
making the capital addition that has a total original cost before
the capital addition of at least $100 million.
Provided, That If
the capital addition is made in a steel, chemical or polymer
alliance zone as designated from time-to-time by executive order of
the Governor, then the person making the capital addition may for
purposes of satisfying the requirements of this subsection join in
a multiparty project with a person owning or operating a
manufacturing facility that has a total original cost before the
capital addition of at least $100 million if the capital addition
creates additional production capacity of existing or related
products or feedstock or derivative products respecting the
manufacturing facility,
consists of a facility used to store,
handle, process or produce raw materials for the manufacturing
facility, consists of a facility used to store, handle or process
natural gas to produce fuel for the generation of steam or
electricity for the manufacturing facility or consists of a
facility that generates steam or electricity for the manufacturing
facility. Beginning July 1, 2011, wherever the number "100" is used
in this subsection, the number "20" shall be substituted and where
the number "50" is used, the number "10" shall be substituted.
(e) (f) "Real property" means all property specified in
subdivision (p), section ten, article two, chapter two of this code
and includes, but is not limited to, lands, buildings and improvements on the land such as sewers, fences, roads, paving and
leasehold improvements.
§11-6F-3. Tax treatment of certified capital addition property.
Notwithstanding any other provisions of law, the value of
certified capital addition property, for purposes of ad valorem
property taxation under this chapter,
shall be is its salvage
value, which for purposes of this article is five percent of the
certified capital addition property's original cost.
For capital
additions certified on or after July 1, 2011, the value of the land
before any improvements shall be subtracted from the value of the
capital addition and the unimproved land value shall not be given
salvage value treatment.
