West Virginia 2021 Regular Session Status: Enacted Bipartisan · 4 R · 2 D cosponsors

HB 3301 — Relating generally to property tax increment financing districts

Last action — Chapter 79, Acts, Regular Session, 2021

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House of Delegates
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 23, 2021. Enacted.

Prognosis

Likely to advance 66% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 11 sponsors

    1 primary, 10 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 R · 2 D) — cross-party backing.

  • Failed a recorded vote

    Failed 1 recorded vote so far — a real headwind.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

165 added · 279 removed

Plain-language change summary

The amendments to Bill HB 3301 clarify the processes related to property tax increment financing districts in West Virginia. Notable changes include allowing county commissions or municipalities to extend the termination dates of certain districts, which can benefit local economies by providing additional time for development projects to generate revenue. Additionally, the bill now provides specific guidance on how revenue sources will change if a district is extended, ensuring clearer financial planning. These updates matter because they can potentially enhance local development efforts and ensure that tax revenue is managed effectively.

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NEWS RELEASES HELPFUL LINKS Introduced Version - Originating in Committee « House Bill 3301 History OTHER VERSIONS  —  Enrolled Version - Final Version  |   |  Email Key:
NEWS RELEASES HELPFUL LINKS Enrolled Version - Final Version « House Bill 3301 History OTHER VERSIONS  —  Introduced Version - Originating in Committee  |   |  Email Key:
Red = new code to be enacted WEST virginia legislature regular session Originating House Bill 3301 By Storch, Hardy, Rowan, Boggs, Rowe, Hott, Williams, Anderson, Howell, Hornbuckle, and Rohrbach [Originating in the Committee on Finance;
Red = new code to be enacted WEST virginia legislature regular session ENROLLED House Bill 3301 By Delegates Storch, Hardy, Rowan, Boggs, Rowe, Hott, Williams, Anderson, Howell, Hornbuckle and Rohrbach [Passed April 10, 2021;
reported on March 23, 2021]   A BILL to amend and reenact §7-11B-3, §7-11B-7, §7-11B-8, §7-11B-9, §7-11B-10, §7-11B-18, and §7-11B-22 of the Code of West Virginia, 1931, as amended, relating generally to property tax increment financing districts;
in effect ninety days from passage.]   AN ACT to amend and reenact §7-11B-3, §7-11B-7, §7-11B-9, §7-11B-10, §7-11B-18, and §7-11B-22 of the Code of West Virginia, 1931, as amended, relating generally to property tax increment financing districts;
authorizing a county commission or municipality to modify the termination time of certain districts;
authorizing a county commission or municipality to extend the termination time of certain districts;
extending length of certain districts;
modifying the revenue sources for a district that is extended;
providing clarification as to the discharge of any tax increment financing obligations outstanding on the termination date of a property tax district;
providing clarifications with respect to the base assessed value and termination date when two or more tax increment financing districts have been combined;
and providing clarifications with respect to the base assessed value and termination date when two or more tax increment financing districts have been combined.
and changing the notice required to be given to other levying bodies prior to a new project plan for a property tax district being considered for approval.
“Development office” means the West Virginia Department of Economic Development Office created in §5B-2-1 of this code.
“Development office” means the West Virginia Department of Economic Development created in §5B-2-1 of this code.
“Payment in lieu of taxes” means those estimated revenues from real property and tangible personal property having a tax situs in the area selected for a development or redevelopment project which revenues, according to the development or redevelopment project or plan, are to be used for a private use, which levying bodies would have received had a county or municipality not adopted one or more tax increment financing plans and which would result from levies made after the date of adoption of a tax increment financing plan during the time the current assessed value of all taxable real and tangible personal property in the area selected for the development or redevelopment project exceeds the total base assessed value of all taxable real and tangible personal property in the development or redevelopment district until the designation is terminated as provided in this article a payment with respect to real and personal property located in a development or redevelopment district and owned in title by this state, a political subdivision of this state or an agency or instrumentality thereof, that is made by the lessee of such property pursuant to a written payment in lieu of taxes agreement, whether in effect as of, or subsequent to, the date of creation of the development or redevelopment district.
“Payment in lieu of taxes” means a payment with respect to real and personal property located in a development or redevelopment district and owned in title by this state, a political subdivision of this state or an agency or instrumentality thereof, that is made by the lessee of such property pursuant to a written payment in lieu of taxes agreement, whether in effect as of, or subsequent to, the date of creation of the development or redevelopment district.
“Tax increment” means the amount of regular levy property taxes attributable to the amount by which the current assessed value of real and tangible personal property having a tax situs in a development or redevelopment district exceeds the base assessed value of the property.
“Tax increment” means the amount of regular levy property taxes attributable to the amount by which the current assessed value of real and tangible personal property having a tax situs in a development or redevelopment district exceeds the base assessed value of the property:
Provided, That where the period of existence of a development or redevelopment district is extended beyond its originally scheduled termination date as permitted by §7-11B-10 of this code, only the regular and excess property tax levies of the county commission and any Class I, II, III or IV municipality, a portion of which is located within the boundaries of the development or redevelopment district, shall be included in the tax increment following the originally scheduled termination date of the development or redevelopment district.
(j) The county commission may modify the boundaries of the development or redevelopment district, from time to time, or, if the boundaries of the development or redevelopment district are not modified, the governing body of a county may extend the length of existence of the development or redevelopment district as set forth in §7-11B-10 of this code, by entry of an order modifying the order creating the development or redevelopment district.
(j) The county commission may modify the boundaries of the development or redevelopment district, from time to time, or the governing body of a county may extend the length of existence of the development or redevelopment district as set forth in §7-11B-10 of this code, subject to the limitations and requirements of this section, by entry of an order modifying the order creating the development or redevelopment district.
(k) The governing body of a municipality may modify the boundaries of the development or redevelopment district, from time to time, or extend the length of existence of the development or redevelopment district as set forth in §7-11B-10 of this code, by amending the ordinance establishing the boundaries of the district creating the development or redevelopment district.
(k) The governing body of a municipality may modify the boundaries of the development or redevelopment district, from time to time, or extend the length of existence of the development or redevelopment district as set forth in §7-11B-10 of this code, by amending the ordinance creating the development or redevelopment district.
(l) Before a county commission or the governing body of a municipality may amend such an order or ordinance, the county commission or municipality shall give the public notice as provided in subdivisions (1) and (2), subsection (b) of this section, hold a public hearing, as provided in subdivision (4), subsection (b) of this section, and obtain the approval of the director of the Development Office., following the procedures for establishing a new development or redevelopment district.
(l) Before a county commission or the governing body of a municipality may amend such an order or ordinance, the county commission or municipality shall give the public notice as provided in subdivisions (1) and (2), subsection (b) of this section, hold a public hearing, as provided in subdivision (4), subsection (b) of this section, obtain the approval of the director of the Development Office, and obtain the formal consent of the governing body of any Class I, II, III or IV municipality a portion of which is located within the boundaries of the development or redevelopment district.
§7-11B-8.
Project plan — approval.
(a) The county commission or municipality creating the district shall cause the preparation of a project plan for each development or redevelopment district and the project plan shall be adopted by order of the county commission, or ordinance adopted by the governing body of the municipality, after it is approved by the executive director of the Development Office.
This process shall conform to the procedures set forth in this section.
(b) Each project plan shall include:
(1) A statement listing the kind, number and location of all proposed public works or other improvements within the district and on land outside but contiguous to the district;
(2) A cost-benefit analysis showing the economic impact of the plan on each levying body that is at least partially within the boundaries of the development or redevelopment district.
This analysis shall show the impact on the economy if the project is not built and is built pursuant to the development or redevelopment plan under consideration.
The cost-benefit analysis shall include a fiscal impact study on every affected levying body and sufficient information from the developer for the agency, if any proposing the plan, the county commission be asked to approve the project and the Development Office to evaluate whether the project as proposed is financially feasible;
(3) An economic feasibility study;
(4) A detailed list of estimated project costs;
(5) A description of the methods of financing all estimated project costs, including the issuance of tax increment obligations and the time when the costs or monetary obligations related thereto are to be incurred;
(6) A certification by the county assessor of the base assessed value of real and tangible personal property having a tax situs in a development or redevelopment district:
Provided, That if such certification is made during the months of January or February of each year, the county assessor may certify an estimated base assessed value of real and tangible personal property having a tax situs in a development or redevelopment district:
Provided, however, That prior to issuance of tax increment obligations, the county assessor shall certify a final base assessed value for the estimated base assessed value permitted by this section;
(7) The type and amount of any other revenues that are expected to be deposited to the tax increment financing fund of the development or redevelopment district;
(8) A map showing existing uses and conditions of real property in the development or redevelopment district;
(9) A map of proposed improvements and uses in the district;
(10) Proposed changes of zoning ordinances, if any;
(11) Appropriate cross-references to any master plan, map, building codes and municipal ordinances or county commission orders affected by the project plan;
(12) A list of estimated nonproject costs;
(13) A statement of the proposed method for the relocation of any persons, businesses or organizations to be displaced;
(14) A certificate from the executive director of the workers’ compensation commission, the commissioner of the Bureau of Employment Programs and the State Tax Commissioner that the project developer is in good standing with the workers’ compensation commission, the Bureau of Employment Programs and the state Tax Division;
and (15) A certificate from the sheriff of the county or counties in which the development or redevelopment district is located that the project developer is not delinquent on payment of any real and personal property taxes in such county.
(c) If the project plan is to include tax increment financing, the tax increment financing portion of the plan shall set forth:
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(1) The amount of indebtedness to be incurred pursuant to this article;
(2) An estimate of the tax increment to be generated as a result of the project;
(3) The method for calculating the tax increment, which shall be in conformance with the provisions of this article, together with any provision for adjustment of the method of calculation;
(4) Any other revenues, such as payment in lieu of tax revenues, to be used to secure the tax increment financing;
and (5) Any other provisions as may be deemed necessary in order to carry out any tax increment financing to be used for the development or redevelopment project.
(d) If less than all of the tax increment is to be used to fund a development or redevelopment project or to pay project costs or retire tax increment financing, the project plan shall set forth the portion of the tax increment to be deposited in the tax increment financing fund of the development or redevelopment district and provide for the distribution of the remaining portion of the tax increment to the levying bodies in whose jurisdiction the district lies.
(e) The county commission or governing body of the municipality that established the tax increment financing fund shall hold a public hearing at which interested parties shall be afforded a reasonable opportunity to express their views on the proposed project plan being considered by the county commission or the governing body of the municipality.
(1) Notice of the hearing shall be published as a Class II legal advertisement in accordance with section two, article three, chapter fifty-nine §59-3-2 of this code.
(2) At least 30 days prior to this publication, Prior to publication, a copy of the notice and a copy of the proposed project plan shall be sent by first-class mail to the chief executive officer of all other levying bodies having the power to levy taxes on property located within the proposed development or redevelopment district.
(f) Approval by the county commission or the governing body of a municipality of an initial development or redevelopment project plan must be within one year after the date of the county assessor’s certification required by subdivision (6), subsection (b) of this section:
Provided, That additional development or redevelopment project plans may be approved by the county commission or the governing body of a municipality in subsequent years, so long as the development or redevelopment district continues to exist.
The approval shall be by order of the county commission or ordinance of the municipality, which shall contain a finding that the plan is economically feasible.
(1) Notice of the hearing shall be published as a Class II legal advertisement in accordance with section two, article three, chapter fifty-nine §59-3-2 of this code.
(1) Notice of the hearing shall be published as a Class II legal advertisement in accordance with §59-3-2 of this code.
Provided, That, for any existing development or redevelopment district for which tax increment financing obligations have been issued by a county commission, or the governing body of a municipality, prior to December 31, 2020, that existing development or redevelopment district may be in existence until December 31, 2050.
Provided, That, for any existing development or redevelopment district for which tax increment financing obligations have been issued by a county commission, or the governing body of a municipality, prior to December 31, 2020, the termination date for that existing development or redevelopment district may be extended not more than five years or until December 31, 2050, whichever is earlier.
In this event, no tax increment financing obligations may have a final maturity date later than the termination date of the district.  The county commission or the governing body of the municipality which created the development or redevelopment district may not take action to terminate a district prior to the time otherwise provided in its official action creating the district if the county commission or the governing body of the municipality then has tax increment revenue obligations which remain outstanding and unpaid.
In this event, no tax increment financing obligations may have a final maturity date later than the termination date of the district.  The county commission or the governing body of the municipality which created the development or redevelopment district may not take action to terminate a district prior to the time otherwise provided in its official action creating or extending the district if the county commission or the governing body of the municipality then has tax increment revenue obligations which remain outstanding and unpaid.
(d) Upon the termination of the district, other than early termination by the county commission or the governing body of the municipality creating the district prior to the date scheduled for its termination by this Act or the official action taken by the county commission or the governing body of the municipality creating the district, any tax increment financing obligations which remain outstanding and unpaid following their maturity date, together with any interest, premium or other charges associated therewith shall be deemed to be discharged and satisfied, and no longer due and payable following such termination date.
(d) The county commission shall adopt, upon the expiration of the time periods set forth in this section, an order terminating the development or redevelopment district created by the county commission:
(e) The county commission shall adopt, upon the expiration of the time periods set forth in this section, an order terminating the development or redevelopment district created by the county commission:
(e) (f) The governing body of the county commission municipality shall repeal, upon the expiration of the time periods set forth in this section, the ordinance establishing the development or redevelopment district:
(e) The governing body of the municipality shall repeal, upon the expiration of the time periods set forth in this section, the ordinance establishing the development or redevelopment district:
(a) The county commission or municipality that created the development or redevelopment district shall deposit in the tax increment financing fund of the development or redevelopment district all payments in lieu of taxes received pursuant to any agreement entered into on or subsequent to the date of creation of a development or redevelopment district on tax exempt property located within the development or redevelopment district and prior to the amendments to this section enacted in the 2021 regular session of the Legislature.
(a) The county commission or municipality that created the development or redevelopment district shall deposit in the tax increment financing fund of the development or redevelopment district all payments in lieu of taxes received pursuant to any agreement entered into on or subsequent to the date of creation of a development or redevelopment district on tax exempt property located within the development or redevelopment district, and prior to the amendments to this section enacted in the 2021 regular session of the Legislature.
(b) The lessee of property that is exempt from property taxes because it is owned by this state, a political subdivision of this state or an agency or instrumentality thereof, which is the lessee of any facilities financed, in whole or in part, with tax increment financing obligations, shall execute a payment in lieu of tax agreement that shall remain in effect until the tax increment financing obligations are paid, during which period of time the lessee agrees to pay to the county sheriff an amount equal to the amount of ad valorem property taxes that would have been levied against the assessed value of the property were it owned by the lessee rather than a tax exempt entity.
(b) Any real or personal property located within the development or redevelopment district and owned by this state, a political subdivision of this state or an agency or instrumentality thereof may be made subject to a payment in lieu of taxes agreement.  The real and personal property subject to a payment in lieu of taxes agreement is deemed public property and exempt from ad valorem property taxation by this state, a political subdivision of this state, an agency or instrumentality thereof or other levying body, so long as it is owned in title by this state, a political subdivision of this state or an agency or instrumentality thereof.  The exemption from ad valorem property taxation is applicable to any leasehold or similar interest held by persons other than this state, a political subdivision of this state or an agency or instrumentality thereof, if acquired or constructed with the written agreement of the county school board, county commission and any municipal authority within whose jurisdiction the real and personal property is physically situated.  (c) Any payment in lieu of taxes agreement shall be made between the public entity that owns the property, the lessee of the property who would be making the payment in lieu of taxes and the county school board, county commission and any municipal authority within whose jurisdiction the real or personal property is situate.  The payment in lieu of taxes agreement shall provide the amount that shall be paid by the lessee and the amount, if any, that shall be attributable to the base assessed value of the property and the incremental value.  (d) Following the amendments to this section enacted in the regular session of the Legislature, any portion of the payment in lieu of taxes attributable in the payment in lieu of tax agreement to the incremental value shall be deposited in the tax increment financing fund.
The (b) Any real or personal property located within the development or redevelopment district and owned by this state, a political subdivision of this state or an agency or instrumentality thereof may be made subject to a payment in lieu of taxes agreement.  The real and personal property subject to a payment in lieu of taxes agreement is deemed public property and exempt from ad valorem property taxation by this state, a political subdivision of this state, an agency or instrumentality thereof or other levying body, so long as it is owned in title by this state, a political subdivision of this state or an agency or instrumentality thereof.  The exemption from ad valorem property taxation is applicable to any leasehold or similar interest held by persons other than this state, a political subdivision of this state or an agency or instrumentality thereof, if acquired or constructed with the written agreement of the county school board, county commission and any municipal authority within whose jurisdiction the real and personal property is physically situated.  (c) Any payment in lieu of taxes agreement shall be made between the public entity that owns the property, the lessee of the property who would be making the payment in lieu of taxes and the county school board, county commission and any municipal authority within whose jurisdiction the real or personal property is situate.  The payment in lieu of taxes agreement shall provide the amount that shall be paid by the lessee and the amount, if any, that shall be attributable to the base assessed value of the property and the incremental value.  (d) Any portion of the payment in lieu of taxes attributable in the payment in lieu of tax agreement to the incremental value shall be deposited in the tax increment financing fund.
Following the amendments to this section enacted in the 2021 regular session of the Legislature, the remaining portion of the in lieu payment shall be distributed among the levying bodies as follows:
The remaining portion of the in lieu payment shall be distributed among the levying bodies as follows:
(c) (e) Other revenues to be derived from the development or redevelopment district may also be deposited in the tax increment financing fund at the direction of the county commission.
(e) Other revenues to be derived from the development or redevelopment district may also be deposited in the tax increment financing fund at the direction of the county commission.
(c) Tax increment financing obligations shall mature over a period not exceeding thirty years from the date of entry of the county commission’s order, or the effective date of the municipal ordinance, creating the development or redevelopment district and approving the development or redevelopment plan their issue date, or a period terminating with the date of termination of the development or redevelopment district, whichever period terminates earlier.
(c) Tax increment financing obligations shall mature over a period not exceeding thirty years from their issue date, or a period terminating with the date of termination of the development or redevelopment district, whichever period terminates earlier.
(j) Insofar as they are consistent with subsections (a), (b) and (c) of this section, the procedures for issuance, form, contents, execution, negotiation and registration of county and municipal industrial or commercial revenue bonds set forth in article two-c, chapter thirteen §13-2C-1 et seq.
(j) Insofar as they are consistent with subsections (a), (b) and (c) of this section, the procedures for issuance, form, contents, execution, negotiation and registration of county and municipal industrial or commercial revenue bonds set forth in §13-2C-1 et seq.
Provided, That the last maturity of the refunding bonds shall not be later than the last maturity of the bonds being refunded termination date of the district as set forth in §7-11B-10 of this code.
Provided, That the last maturity of the refunding bonds shall not be later than the termination date of the district as set forth in §7-11B-10 of this code.
NOTE:
The Joint Committee on Enrolled Bills hereby certifies that the foregoing bill is correctly enrolled.
The purpose of this bill is to revise the West Virginia Tax Increment Financing Act to authorize a county commission or municipality to modify the termination times of certain districts, eliminating internal inconsistencies regarding the discharge of all obligations upon the termination date of a district, providing clarification as to the result when two tax increment financing districts are combined, providing a workable framework for the utilization of payment in lieu of tax arrangements within property TIF Districts, shortening the notice period for providing a copy of notice of public hearing to levying bodies prior to conducting a public hearing on the approval or amendment of a project plan and making other clarifications.
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Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
        Chairman, House Committee                          ...............................................................
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                             Chairman, Senate Committee                                                       Originating in the House.
  In effect ninety days from passage.
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                  Clerk of the House of Delegates                          ...............................................................
                                                   Clerk of the Senate                                         ...............................................................
                                            Speaker of the House of Delegates                                                                 ...............................................................
                                                                           President of the Senate     __________             The within ...................................................
this the...........................................
  day of ..........................................................................................................., 2021.
                                                    .............................................................
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Action History

  1. Chapter 79, Acts, Regular Session, 2021

  2. Approved by Governor 4/26/21

  3. To Governor 4/22/21

  4. Approved by Governor 4/26/21 - House Journal

  5. Approved by Governor 4/26/21 - Senate Journal

  6. To Governor 4/22/21 - Senate Journal

  7. To Governor 4/22/21 - House Journal

  8. House Message received

  9. Completed legislative action

  10. Communicated to Senate

  11. Effective ninety days from passage

  12. House concurred in Senate amendment and passed bill (Roll No. 612)

  13. House received Senate message

  14. Senate requests House to concur

  15. Effective from passage (Roll No. 428)

  16. Passed Senate with amended title (Roll No. 428)

  17. Read 3rd time

  18. On 3rd reading

  19. Committee amendment adopted (Voice vote)

  20. Read 2nd time

  21. On 2nd reading

  22. Read 1st time

  23. On 1st reading

  24. Reported do pass, with amendment and title amendment

  25. To Finance

  26. To Finance

  27. Introduced in Senate

  28. Communicated to Senate

  29. Effective from passage (Roll No. 305)

  30. Passed House (Roll No. 304)

  31. Read 3rd time

  32. On 3rd reading, Special Calendar

  33. Read 2nd time

  34. On 2nd reading, Special Calendar

  35. Read 1st time

  36. On 1st reading, Special Calendar

  37. Do pass

  38. Originating in House Finance

Sponsors

Sponsorship breakdown

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1 sponsors · 10 co-sponsors · 141 not signed on

Sponsors (1)

  • Storch

Co-sponsors (10)

Not signed on (141)

141 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

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taxation housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 3301?
HB 3301 is sponsored by Storch, Hardy, Rowan, Boggs, Rowe, John Paul Hott (Republican), John Williams (Democrat), William Anderson (Republican), Gary G. Howell (Republican), Sean Hornbuckle (Democrat), and Matthew Rohrbach (Republican).
What is the current status of HB 3301?
This bill has been enacted into law. Introduced March 23, 2021. Enacted.
Where can I track HB 3301?
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