West Virginia 2023 Regular Session

West Virginia House Bill HB3404

Introduced
2/13/23  

Caption

Relating to the valuation of farm property

Impact

If enacted, HB3404 would significantly alter the financial obligations of landowners transitioning their property from agricultural to commercial use. Previously, farm properties could retain their lower tax assessments, thereby reducing the tax burden on landowners even as the property’s value increased due to development. This bill aims to close this loophole, ensuring that properties are assessed at their true market value for tax purposes post-sale, potentially increasing tax revenues for counties. Local assessors would need to compute the tax savings for the years prior to development, which could add administrative responsibilities to existing operations.

Summary

House Bill 3404 is a legislative measure aimed at amending the tax valuation process for farm properties in West Virginia. The bill stipulates that land previously assessed as farm property will be taxed at the regular tax rate for the three years following its sale for development purposes. This seeks to ensure that any profits from the sale of such properties contribute to the local tax base and reduce potential tax advantages gained by holding agricultural valuation on land that is developed commercially. The intent behind this bill is to create a more equitable tax structure that addresses changes in land use.

Sentiment

Reactions surrounding HB3404 appear to be mixed among stakeholders. Proponents are likely to praise the bill for fostering a fairer tax system and ensuring that developers contribute appropriately to local revenues. Conversely, opponents may express concerns regarding the financial impact on landowners transitioning their properties, arguing that it might hinder agricultural operations or discourage real estate investment. The overall sentiment is expected to vary across different communities, particularly those with significant agricultural land.

Contention

A notable point of contention arises from the balance between supporting local agricultural businesses and ensuring that the tax base adequately reflects modern land use practices. Critics could argue that enforcement of the regular tax rate on previously agricultural land may discourage farmers from selling their land or push them to maintain agricultural use even when development could be more beneficial. Furthermore, the complexities of property valuation, particularly in assessing fair market values post-transition, could lead to disputes and challenges in implementation.

Companion Bills

No companion bills found.

Previously Filed As

WV HB5115

Relating to the valuation of farm property

WV SB618

Allowing reduced property valuation for certain farmland

WV HB4336

Providing for the valuation of natural resources property

WV HB4725

Relating to providing a cap on property taxes

WV HB2344

Relating to providing a cap on property taxes

WV HB4226

Relating to providing a cap on property taxes

WV HB3334

Valuation of industrial property and natural resources property by Tax Commissioner

WV SB395

Relating to valuation of industrial property and natural resources by Tax Commissioner

WV HB2140

Revenue and taxation; Ad Valorem Tax Code; definitions; classifications of property; valuation procedures; effective date.

WV HB2777

Revenue and taxation; ad valorem taxation; wind power; valuation; effective date.

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DC B25-0486

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CA SB964

Property tax: tax-defaulted property sales.

CA SB603

Property taxation: transfer of base year value: disaster relief.

CA SB1091

Property taxation: transfer of base year value: disaster relief.

HI HB1398

Relating To Property.