W. Va. Code R. § 110-6F-3

Current through Register Vol. XLI, No. 48, November 27, 2024

Section 110-6F-3 - Application for Certification of Capital Addition Property

W. Va. Code '11-6F-4 requires that an application for certification of capital addition property be filed with the Tax Commissioner "on or before the date the property is first required to be reported on an annual return for ad valorem property tax purposes

3.1. Every corporation owning a manufacturing facility located in West Virginia (except public service businesses) is required by W. Va. Code '11-1C-10 to prepare and file an annual property tax return with the Tax Commissioner between July 1st and October 1st each year listing all of its property subject to taxation including, but not limited to, construction in progress.

3.1.1. The year in which the annual return is required to be filed is the calendar year preceding the tax year. The term "tax year" is defined in W. Va. Code '11-5-3 to mean the calendar year following the July first assessment day, or in the case of a public service business assessed pursuant to W. Va. Code '11-6-1 et seq, the calendar year beginning on the January first assessment day.

3.2. Due date. -- Under W. Va. Code '11-6F-4, a person seeking to have property designated as certified capital addition property for purposes of the Act, shall make a sworn application to the State Tax Commissioner, on forms prescribed for that purpose by the Tax Commissioner, on or before the date the property is first required to be reported on an annual return for property tax purposes. Application for certification shall be treated as having been timely filed with the Tax Commissioner for purposes of the Act if the application for certification is filed on or before the first day of October of the year in which the annual return is required to be filed to report the property which the Taxpayer seeks to have certified as certified capital addition property. For public service businesses, application for certification shall be treated as having been timely filed with the Tax Commissioner for purposes of the Act if the application for certification is filed on or before the first day of May of the year in which the annual return is required to be filed to report the property which the Taxpayer seeks to have certified as certified capital addition property. Applications shall not be accepted for capital additions to a manufacturing facility enrolled in the name of the Taxpayer before the statutory effective date, i.e., for property enrolled in the name of the Taxpayer before July 1, 1997.

3.2.1. Applications for certification of multiple party projects located in polymer alliance zones. -- If qualified capital addition property investment is made in a polymer alliance zone, W. Va. Code '11-6F-2d allows one or more persons making the qualified capital addition to join in a multiparty project with a person owning or operating a preexisting manufacturing facility:

(1) that is located in the polymer alliance zone where the qualified capital addition property is to be located; and

(2) that has property in place in the polymer alliance zone having a total original cost before the capital addition of at least one hundred million dollars.

3.2.1.1. The multiple party project may be certified by the Tax Commissioner if the capital addition creates additional production capacity of existing or related products or feedstock or derivative products respecting the preexisting manufacturing facility and if the qualified capital addition property investment otherwise meets the requirements of the Act and this rule.

3.2.1.2. Applicants for multiple party projects to be located in a polymer alliance zone shall make a sworn application to the Tax Commissioner in accordance with W. Va. Code '11-6F-4 on forms prescribed for that purpose by the Tax Commissioner, on or before the date the property is first required to be reported to the county assessor on an annual return for property tax purposes. Application for certification shall be treated as having been timely filed with the Tax Commissioner for purposes of the Act if the application for certification is filed on or before the first day of October of the year in which the annual return is required to be filed to report the property which the Taxpayers seek to have certified as certified capital addition property.

3.2.1.2.a. An application for a multiple party project for qualified capital addition property investment in a polymer alliance zone shall be executed by all proposed participants. It shall specifically state that the participants seek certification of a multiple party project and certified capital investment to be made in a polymer alliance zone. The application shall specifically identify the particular polymer alliance zone in which the investment is to be made. It shall affirm that all participants are:

3.2.1.2.a.1. Manufacturers of polymers;

3.2.1.2.a.2. Manufacturers of the production inputs (i.e. feedstock) for the manufacture of polymers; or

3.2.1.2.a.3. Manufacturers that use polymers as production inputs in the manufacture of derivative products.

3.2.1.2.a.4. No other Taxpayers or persons shall qualify as participants in a multiple party polymer alliance zone project for purposes of the Act.

3.2.1.2.b. The application for a multiple party project shall specifically state that one of the proposed participants is a person owning or operating a manufacturing facility that predominantly (1) manufactures polymers; (2) manufactures production inputs (feedstock) for the manufacture of polymers; or (3) manufactures a derivative product which is produced from polymers. The facility must predominantly manufacture one or more of the enumerated products, but need not exclusively manufacture those products. The application shall specifically state that the preexisting manufacturing facility is (1) located in the polymer alliance zone where the qualified capital addition property is to be located and (2) has a total original cost before the capital addition of at least one hundred million dollars in place in a polymer manufacturing facility in the polymer alliance zone. The application shall specifically identify the person owning or operating that manufacturing facility and shall be executed by that person or a legal representative of that person along with all other proposed participants.

3.2.1.2.c. The application for certification of a multiple party project shall specifically state that the proposed qualified capital addition property shall create additional production capacity of existing or related polymer products produced by that manufacturing facility or feedstock or derivative products produced by that manufacturing facility.

3.2.1.2.d. The application must describe in detail the investment and business expansion plan, and shall show that the investment shall be integrated with the preexisting manufacturing facility.

3.2.1.2.e. Multiple party investments in a polymer alliance zone that are not integrated with the preexisting facility shall not be certified. In order for an investment to be integrated with a preexisting facility, the qualified capital investment property and its operation shall typically be physically, economically and functionally integrated with the preexisting manufacturing facility in accordance with the criteria set forth in this rule for integrated investments.

3.2.1.2.f. Only persons or entities that directly make substantial investment in qualified capital addition property shall qualify as project participants in a multiple party polymer alliance zone project for purposes of the Act.

W. Va. Code R. § 110-6F-3