SB 898 — Relating to valuation of farm property

CS for SB 898 WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for Senate Bill 898 By SenatorSenators Thorne [Introducedand Rucker [Reported February 10,25,2026 2026;from the Committee on Agriculture] CS for SB 898 A BILL to amend and reenact §11-1A-10 of the Code of West Virginia, 1931, as amended, relating to valuation of farm property;

referredproviding tothat thebuildings Committeeand structures situated on Agriculture;farm property and used exclusively for purposes of agriculture shall be valued at their salvage value for purposes of ad valorem property taxation;

anddefining thenterm; to the Committee on Finance] Intr SB 898 2026R3608 A BILL to amend and reenact §11-4-10 of the Code of West Virginia, 1931, as amended, relating to valuing certain buildings used solely for agricultural purposes;

providingand for,establishing beginningan Januaryeffective 1,date. 2027, valuing of certain buildings used solely for agricultural purposes at salvage value when assessing ad valorem real property tax;

and providing for, beginning January 1, 2029, removing any valuation of certain buildings used solely for agricultural purposes when assessing ad valorem real property tax.

ARTICLE 4.1A.

ASSESSMENTAPPRAISAL OF REAL PROPERTY.

§11-4-10.§11-1A-10.

LandValuation andof buildingsfarm assessedproperty. separately;

town(a) lots;With respect to farm property, the Tax Commissioner shall appraise such property so as to ascertain its fair and reasonable value for farming purposes regardless of what the value of the property would be if used for some other purpose, and the value shall be arrived at by giving consideration to the fair and reasonable income which the property might be expected to earn in the locality wherein situated, if rented.

backThe taxingfair and reasonable value for farming purposes shall be deemed to be the market value of omittedsuch buildings.property for appraisement purposes.

Land(b) andA theperson buildingsis ornot structuresengaged erectedin thereonfarming shallif behe assessedor separatelyshe andis theprimarily valueengaged ofin eachforestry enteredor separatelygrowing intimber. the landbooks.

Land,Additionally, excepta towncorporation lots,is shallnot beengaged valuedin byfarming theunless acre,its andprincipal townactivity lotsis shallthe bebusiness designatedof byfarming, and in the numberevent ofthat the lotcontrolling andstock interest in the namecorporation ofis theowned streetby onanother whichcorporation, itthe fronts,corporation providedowning the lotscontrolling beinterest numberedmust andalso thebe streetsprimarily ofengaged in the townbusiness designatedof byfarming. name.

Every(c)(1) assessorNotwithstanding shall,any inother eachprovision year,of inthis arrivingcode atto the contrary, the value of thebuildings buildings,and includingstructures mobilesituated homeson farm property and which are used exclusively for residentialthe purposes permanentlyof affixedagriculture, tofor the landpurpose andof ownedad byvalorem theproperty ownertaxation ofunder thethis land,chapter takeand intounder accountarticle anyX improvementsof orthe changesConstitution affectingof the valueState of suchWest buildings.Virginia, shall be their salvage value.

IfBuildings theand assessorstructures shallsituated discoveron anyfarm buildingproperty which hasare beenused omittedexclusively fromfor the landbookpurposes forof anyagriculture previousinclude, years,but heare ornot shelimited mayto, backbarns, taxstables, thechicken samehouses, inmilking theparlors, samelean-tos, manneroutbuildings, hay barns, silos, and toany theother samebuilding extentwhich asis used solely in the caseproduction of personalan property:1 CS for SB 898 agricultural product, as that term is defined in §19-2-1(b) of this code, or as storage for agricultural tools or products.

Provided,(2) ThatFor beginningthe Januarypurposes 1,of 2027,this buildingssubsection, on“salvage qualifiedvalue” farmlandmeans whichthe arelower usedof solelyfair formarket thesalvage purposesvalue ofor agriculturefive shallpercent beof assessedthe atoriginal theircost salvageof value:the property.

Provided,(3) however,The Thatprovisions beginning January 1, 2029, buildings on qualified farmland which are used solely for the purposes of agriculturethis subsection shall not be includedeffective orJanuary assessed1, in2027. any determination of ad valorem property tax.

Buildings on qualified farmland which are used solely for the purposes of agriculture include, but are not limited to, barns, stables, chicken houses, milking parlors, lean- Intr SB 898 2026R3608 tos, outbuildings, hay barns, silos, and any other building which is used solely in the production of an agricultural product, or as storage for agricultural tools or products.

The purpose of this bill is to assessrequire certainthe agriculturalappraisal buildingsof oncertain qualified farmland at salvage value beginning January 1, 2027, and, beginning January 1, 2029, remove such buildings fromand adstructures valoremon realfarm property taxat assessmenttheir altogether.salvage value.