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-6 - Period of Time Over Which Property is Placed in Service

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. 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."
6.2. A Taxpayer may
				apply for certification of a project investment that is to be placed in service
				or phased in over a period of years at a total cost of more than $50 million
				and comply with W. Va. Code '11-6F-4
				if the application for certification is filed before the first items of
				investment property (either as a completed facility or as construction in
				progress) are required to be reported on a property tax return.
6.3. Certified capital addition property
				shall be placed in service as part of a defined plan for an integrated capital
				addition to a manufacturing facility over a definite and limited period of time
				based upon the Taxpayer's plan for the expansion. It may be that a Taxpayer
				shall undertake a development where the investment shall be made over a number
				of years for a single expansion. There is no set maximum time limitation period
				for the placement of the integrated investment property in service.
6.4. In some cases expansion may take place
				in phases where one portion of the plant expansion (such as a production line
				or unit) may be placed in operation, and other phases of the expansion shall
				then be later placed into operation as they are built. The Tax Commissioner
				shall certify multi-phase projects if the project phases can be reasonably
				included as components of a plan for an integrated capital addition to a
				manufacturing facility. However, if there is a substantial expanse of time or
				delay (either planned or unplanned) between the placement of one phase into
				operation, and the commencement of construction or operation of a succeeding
				phase, the Tax Commissioner may determine that the expansions resulting from
				those purported phased investments are not part of a plan for integrated
				capital additions to a manufacturing facility, but instead are a series of
				discrete non-integrated investments. A time gap or delay of more than 1 year
				shall be considered substantial.
6.4.1. If
				investments are determined to be discrete non-integrated investments, the
				property acquired with the investments shall qualify separately for special
				property valuation under the Act. Each non-integrated investment shall
				independently meet the $50 million investment threshold requirement.
6.4.2. In the case of integrated multi-phase
				investments, the total qualified investment combining all integrated phases of
				the development shall typically be included in the measure of investment in
				qualified capital addition property for determining whether it meets the $50
				million investment threshold requirement and, once the threshold had been
				exceeded, toward the amount of the certified capital addition.