West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-03 - Exemption Of property from ad valorem property taxation › Section 110-3-20 - Property Used For Area Economic Development Purposes By Nonprofit Corporations When Such Property Is Not Leased For Profit

Current through Register Vol. XLI, No. 28, July 12, 2024
20.1. Property used for area economic
				development purposes by nonprofit corporations is property used by nonprofit
				corporations meeting the definition of 42 U.S.C. '9802 of a community
				development corporation, or property used by nonprofit corporations having as
				their purpose the development of special programs by which the revenues of
				urban or rural low income areas may, through self-help and mobilization of the
				community at large, improve the quality of the economic and social
				participation in community life in such a way as to contribute to the
				elimination of poverty and the establishment of permanent, economic and social
				benefits.
20.2. In order for
				property used for area economic development purposes by nonprofit corporations
				to be exempt, it is essential that the use of the property be a use which is
				exempt under W. Va. Const. Art. X, '1; thus, it must be "property used for
				educational, literary, scientific, religious or charitable purposes."
				Therefore, while property may be owned by a public organization and leased to a
				private party, the leasehold will be subject to tax unless it can be shown that
				the property is being used for an exempt purpose. Such property may be exempt
				if used for training, public service and employment programs or related
				services for unemployed or low-income persons. The foregoing are examples.
				Because the exemption question is dependent upon whether the leasehold interest
				is used primarily as a public service or as a private enterprise for profit,
				each case will be determined on an individual basis, dependent upon the facts
				thereof.
20.3. Such property, to be
				exempt from ad valorem property taxation, must conform to one or more of the
				exemptions set forth in Article X, '1 of the Constitution of West Virginia. For
				example: Property used for area economic development purposes will typically
				conform to the criteria defining a charitable use. Such property may, however,
				sometimes come under the public property exemption or the exemption for
				educational, literary or scientific use.
20.4. Property used for area economic
				development purposes by nonprofit corporations and not leased out for profit is
				exempt from ad valorem property taxation if such property is used for
				charitable purposes in accordance with Section 9 of these regulations, is an
				educational, literary or scientific institution in accordance with these
				regulations, but nonprofit in nature, or in state, county or municipal property
				or property of the United States or otherwise exempt public property in
				accordance with these regulations.
20.5. Upon implementation of the statewide
				reappraisal, this exemption, to the extent it applies to intangible personal
				property, will be moot because W. Va. Const. Art. X, '1b removes intangible
				personal property from ad valorem property taxation unless the Legislature
				thereafter subjects such property to such taxation.