W. Va. Code R. § 110-6F-7

Current through Register Vol. XLI, No. 45, November 8, 2024

Section 110-6F-7 - Period of Time Over Which Special Property Tax Valuation Applies

W. Va. Code '11-6F-4 states that the certified capital addition property receives special property tax valuation for a period of 10 years subsequent to the placement of the qualified capital addition property in service unless it is sooner removed from service or operations cease.

7.1. Qualified capital addition property enrolled in the name of the Taxpayer before the $50 million threshold has been exceeded shall not be treated as having been placed in service for purposes of the Act until the $50 million threshold has been exceeded. Property represented by the $50 million initial investment amount shall be treated as having been placed in service for purposes of the Act on the next assessment day (July 1) after the $50 million threshold is exceeded without regard to the year when the property may have been enrolled in the name of the Taxpayer, and so shall receive the special property tax valuation beginning with the tax year commencing on the next January 1 after the July 1 assessment date. Qualified capital addition property enrolled in the name of the Taxpayer after enrollment of the first $50 million of qualified capital addition property shall be treated as having been placed in service when enrolled in the name of the Taxpayer. The tax year is the calendar year following the July first assessment day.

7.2. The Taxpayer is entitled to the special property tax valuation allowed under the Act only when more than $50 million of qualified capital addition property has been placed on the property tax books of the taxing jurisdiction. The initial $50 million of qualified capital addition property and all qualified capital addition property placed on the property tax books after the $50 million threshold has been exceeded shall constitute a "qualified capital addition to a manufacturing facility" and "certified capital addition property," and the ten year valuation treatment shall then begin for that property in the tax year for which it is assessed on the next assessment day after the $50 million threshold is exceeded.

7.3. For qualified capital addition property placed in service after the $50 million threshold has been exceeded which takes more than one tax year to construct, and for qualified capital addition property placed in service after the $50 million threshold has been exceeded that is under construction in such a way that it is caught in a so called "straddle" where some of the qualified capital addition property is assessed on July 1 of one year, and the remainder of the qualified capital addition property is assessed on July 1 of the next year, the mandated valuation shall be available for each portion of the qualified capital addition property for ten years beginning in the tax year for which each portion was first assessed. This creates a layered, year by year entitlement to the special valuation under the Act for property represented by each year's investment.

7.4. For example:

7.4.1. The $50 million threshold is exceeded on or before the July 1 assessment day for tax year 1. Part of the remaining qualified capital addition property is placed in service on or before the July 1 assessment day for tax year two, and part on or before the July 1 assessment day for tax year three.

7.4.2. The initial $50 million of qualified capital addition property and the qualified capital addition property in excess of $50 million placed in service for tax year 1 shall have the special valuation under the Act for tax years 1 through 10, inclusive. The property placed in service for tax year 2 shall have the special valuation under the Act for tax years 2 through 11, inclusive. The property placed in service for tax year 3 shall have the special valuation under the Act for tax years 3 through 12, inclusive.

W. Va. Code R. § 110-6F-7