West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-06F - Property Tax Valuation Of Certain Manufacturing Property › Section 110-6F-7 - Period of Time Over Which Special Property Tax Valuation Applies

Current through Register Vol. XLI, No. 28, July 12, 2024
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.