W. Va. Code R. § 110-6F-8

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

Section 110-6F-8 - Computation of Tax

8.1. W. Va. Code '11-6F-2(d) defines the term "qualified capital addition to a manufacturing facility" as all real property and personal property, the combined original cost of all of the property which exceeds fifty million dollars 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 one hundred million dollars.

8.2. The tax is computed by valuing the qualified capital addition to a manufacturing facility at 5% of its total original cost, and then applying the 60% West Virginia assessment ratio, and then multiplying the result by the tax rate for the local taxing jurisdiction.

8.3. Illustration: If a $300 million investment were made in 1997 by a qualified entity with $100 million or more of original cost investment in place in West Virginia, and if the investment in new qualified capital addition property otherwise qualified for special valuation under the Act, the tax liability would be calculated as follows:

Property with an original cost of $300 million would be valued at 5% of original cost for property tax purposes.

$300 million X 5% = $15 million salvage value

$15 million X 60% assessment ratio = $9 million assessed value

The 1997 property tax rate for class three property in the particular local taxing jurisdiction shall be hypothetically assumed to be 2.0732%.

$9 million X 2.0732% tax rate =

$186,588 Annual Tax on the

$300 Million Capital Addition Property

W. Va. Code R. § 110-6F-8