Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb587%20intr.htm&yr=2011&sesstype=RS&i=587
Timestamp: 2018-04-23 06:25:58
Document Index: 184512496

Matched Legal Cases: ['§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5']

(By Senators Kessler (Acting President), Unger, Browning and Stollings)
A BILL to amend and reenact §5B-2E-5 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto two new sections, designated §5B-2E-7b and §5B-2E-7c, all relating generally to the West Virginia Tourism Development Act; and adding a small-scale tourism development component and an ancillary project component.
That §5B-2E-5 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto two new sections, designated §5B-2E-7b and §5B-2E-7c, all to read as follows:
(a) Each eligible company that seeks to qualify a project for the tourism development project tax credit provided by section seven of this article, or for the tourism development expansion project tax credit provided by section seven-a of this article, the small scale tourism development project tax credit provided by section seven-b of this article or the ancillary tourism facilities development project tax credit provided by section seven-c of this article, as applicable, must shall file a written application for approval of the project with the development office.
(e) The applicant for credit under section seven or seven-a of this article shall pay to the development office, prior to the engagement of the services of a competent consulting firm or firms pursuant to the provisions of subsection (d) of this section, for the cost of the consulting report or reports and shall cooperate with the consulting firm or firms to provide all of the data that the consultant considers necessary or convenient to make its determination under subsection (d) of this section. An applicant for credit under section seven-b of this article shall pay to the development office a fee of $1,000 per application. An applicant for credit under section seven-c of this article shall pay to the Development Office a fee of $500 per application. The fee shall be used by that office to reimburse costs of the small business development center, a division of the development office, to review the application and make a recommendation to the Executive Director of the Development Office under subsection (d) of this section.
(h) The Executive Director of the Development Office may give its final approval to the applicant's application for a project and may grant to the applicant the status of an approved company. The Executive Director of the Development Office shall act to approve or not approve any application within sixty days following the receipt of the consultant's final, written report or reports or the receipt of any additional information requested by the Development Office, whichever is later. The decision by the Executive Director of the Development Office is final.
(b) Approved companies are allowed a credit against the West Virginia consumers sales and service tax imposed by article fifteen, chapter eleven of this code and collected by the approved company on sales generated by or arising from the operations of the small scale tourism development project. A project that qualifies for the credit allowed by this section may not claim any credit under section seven or seven-a of this article. The amount of this credit is determined and applied as provided in this article.
(e) The amount determined under subsection (c) of this section is allowed as a credit against the consumers sales and service tax collected by the approved company on sales from the operation of the small scale tourism development project. The amount determined under said subsection may be used as a credit against taxes required to be remitted on the approved company's monthly consumers sales and service tax returns that are filed pursuant to section sixteen, article fifteen, chapter eleven of this code. The approved company shall claim the credit by reducing the amount of consumers sales and service tax required to be remitted with its monthly consumers sales and service tax returns by the amount of its aggregate annual credit allowance until such time as the full current year annual credit allowance has been claimed. Once the total credit claimed for the tax year equals the approved company's aggregate annual credit allowance no further reductions to its monthly consumers sales and service tax returns will be permitted.
(h) The company approved to claim the small scale tourism development project credit allowed by this section shall be subject to the forfeiture of unused tax credit provisions and the recapture tax provision of section eight of this article. Additionally, the approved company shall be required to submit to the development office the information required by section eight of this article and shall be allowed to transfer the credit allowed by this section to a successor business subject to the rules provided in section eight of this article.
§5B-2E-7c. Amount of credit allowed for ancillary tourism facilities development project; approved projects.
(1) "Ancillary tourism facilities development project" means the acquisition, including the acquisition of real estate by a leasehold interest with a minimum of ten years, construction, expansion and/or equipping of a new or existing facility located at or near an existing tourism attraction that exists for the sole purpose of providing recreational, entertainment or lodging for use by tourists, as specifically set forth and defined in the application, where the cost of the project will exceed $100,000 but will not exceed $1 million: Provided, That an ancillary tourism facilities development project does not include the construction, reconstruction, rehabilitation or expansion of a lodging facility with more than thirty guest rooms, notwithstanding any other provision in this article to the contrary. All ancillary tourism facilities development projects shall be in accordance with the applicable county ancillary tourism facilities development plan.
(2) "County ancillary tourism facilities development plan" means a comprehensive ancillary tourism facilities development plan developed by the local economic development organization designated as the lead entity for economic development by the county commission of the county in which the ancillary tourism facilities development project will be located, as revised, amended or supplemented, from time to time, by the local development organization. Any such plan or plans shall be based on studies of governmental, social, economic, environmental and physical conditions and trends and shall aim at the coordinated development of ancillary tourism facilities in the county in order to promote the general health, welfare, convenience and prosperity of its people through the encouragement and development of tourism facilities that support existing tourism attractions by attracting individuals who are not residents of the state into a geographical area in which travel was not planned or will extend the stay of travelers who are not residents of the state in an area in which travel has been planned. The plan or plans, or parts thereof, shall be prepared by persons appropriately qualified under state statutes dealing with the applicable profession or occupation. The plan or plans shall be submitted for review and approval by the Secretary of Commerce prior to adoption by the local economic development organization designated as the lead entity for economic development activities by the county commission of the county in which the ancillary tourism facilities development project will be located.
(d) The maximum amount of credit allowable in this article is equal to twenty-five percent of the approved company's approved costs as provided in the agreement: Provided, That if the ancillary tourism facilities development project site is located within the permit area or an adjacent area of a surface mining operation, as these terms are defined in section three, article three, chapter twenty two of this code, from which all coal has been or will be extracted prior to the commencement of the tourism development project, the maximum amount of credit allowable is equal to thirty-five percent of the approved company's approved costs as provided in the agreement: Provided, however, That if the ancillary tourism facilities development project involves the restoration or rehabilitation of a structure that is listed individually in the National Register of Historic Places or is located in a National Register Historic District and certified by the State Historic Preservation Officer as contributing to the historic significance of the district and the rehabilitation or restoration project has been approved in advance by the State Historic Preservation Officer, the maximum amount of credit allowable is equal to fifty percent of the approved company's approved costs as provided in the agreement.
(f) The amount determined under subsection (d) of this section is allowed as a credit against the consumers sales and service tax collected by the approved company on sales from the operation of the ancillary tourism facilities development project. The amount determined under said subsection may be used as a credit against taxes required to be remitted on the approved company's monthly consumers sales and service tax returns that are filed pursuant to section sixteen, article fifteen, chapter eleven of this code. The approved company shall claim the credit by reducing the amount of consumers sales and service tax required to be remitted with its monthly consumers sales and service tax returns by the amount of its aggregate annual credit allowance until such time as the full current year annual credit allowance has been claimed. Once the total credit claimed for the tax year equals the approved company's aggregate annual credit allowance, no further reductions to its monthly consumers sales and service tax returns will be permitted.
NOTE: The purpose of this bill is to add a small scale tourism development component and an ancillary tourism facilities development component to the West Virginia Tourism Development Act.
§5B-2E-7b and §5B-2E-7c are new; therefore, strike-throughs and underscoring have been omitted.