SB 138 — Incentives for consolidating local governments

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Red = new code to be enacted WEST virginia legislature regular session IntroducedCommittee Substitute for Senate Bill 138 BySenators SenatorBlair, BlairPalumbo, [Introducedand JanuaryRoberts, 8,original 2020;sponsors [Originating in the Committee on Government Organization;

referredreported on January 16, 2020]     A BILL to amend and reenact §7-11B-3, §7-11B-4, and §7-11B-7 of the CommitteeCode onof GovernmentWest Organization;Virginia, 1931, as amended;

and then to the Committee on Finance] A BILL to amend and reenact §7-11B-3, §7-11B-4, and §7-11B-7 of the Code of West Virginia, 1931, as amended;

— When used in this article, words and phrases defined in this section have the meanings ascribed to them in this sectionsection, unless a different meaning is clearly required either by the context in which the word or phrase is used or by specific definition in this article.

— (1) “Agency” includes a municipality, a countycounty, or municipal development agency established pursuant to authority granted in §7-12-1 of this code, a port authority, an airport authority, or any other entity created by this state, or an agency or instrumentality of this statestate, that engages in economic development activity, or the Division of Highways.

(2) “Base assessed value” means the taxable assessed value of all real and tangible personal property, excluding personal motor vehicles, having a tax situs within a development or redevelopment district as shown upon the landbooks and personal property books of the assessor on July 1 of the calendar year preceding the effective date of the order or ordinance creating and establishing the development or redevelopment district:

Provided, That for any development or redevelopment district approved after the effective date of the amendments to this section enacted during the regular session of the LegislatureLegislature, in 2014, personal trailers, personal boats, personal campers, personal motor homes, personal ATVs, and personal motorcycles having a tax situs within a development or redevelopment district are excluded from the base assessed value.

(3) “Blighted area” means an area within the boundaries of a development or redevelopment district located within the territorial limits of a municipality or county in which the structures, buildings, or improvements, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for access, ventilation, light, air, sanitation, open spaces, high density of population, and overcrowding, or the existence of conditions which endanger life or property, are detrimental to the public health, safety, morals, or welfare.

(4) “Commissioner of Highways” means the Commissioner of the Division of Highways.

(5) “Conservation area” means any improved area within the boundaries of a development or redevelopment district located within the territorial limits of a municipality or county in which 50 percent or more of the structures in the area have an age of 35 years or more.

(6) “County commission” means the governing body of a county of this state and, for purposes of this article only, includes the governing body of a Class II, or Class IIII, or Class III municipality in this state, or the governing body of a municipality that successfully consolidated pursuant to §7A-1-1 through §7A-7-8§7A-7-8, inclusive, of this code.

(7) “Current assessed value” means the annual taxable assessed value of all real and tangible personal property, excluding personal motor vehicles, having a tax situs within a development or redevelopment district as shown upon the landbook and personal property records of the assessor:

(8) “Development office”Office” means the West Virginia Development Office created in §5B-2-1 of this code.

(9) “Development project” or “redevelopment project” means a project undertaken in a development or redevelopment district for eliminating or preventing the development or spread of slums or deteriorated, deteriorating, or blighted areas, for discouraging the loss of commerce, industry, or employment, for increasing employment, or for any combination thereof, in accordance with a tax increment financing plan.

(10) “Development or redevelopment district” means an area proposed by one or more agencies as a development or redevelopment district which may include one or more counties, one or more municipalities, or any combination thereof, that has been approved by the county commission of each county in which the project area is located if the project is located outside the corporate limits of a municipality, or by the governing body of a municipality if the project area is located within a municipality, or by both the county commission and the governing body of the municipality when the development or redevelopment district is located both within and without a municipality.

(11) “Division of Highways” means the state Department of Transportation, Division of Highways.

(12) “Economic development area” means any area or portion of an area within the boundaries of a development or redevelopment district located within the territorial limits of a municipality or county that is neither a blighted area nor a conservation area and for which the county commission finds that development or redevelopment will not be solely used for development of commercial businesses that will unfairly compete in the local economy and that development or redevelopment is in the public interest because it will:

(13) “Governing body of a municipality” means the city council of a Class II, or Class IIII, or Class III municipality in this state, or of a municipality that successfully consolidated pursuant to §7A-1-1 through §7A-7-8§7A-7-8, inclusive, of this code.

(14) “Incremental value”, for any development or redevelopment district, means the difference between the base assessed value and the current assessed value.

(15) “Includes” and “including”, when used in a definition contained in this article, shall not exclude other things otherwise within the meaning of the term being defined.

(16) “Intergovernmental agreement” means any written agreement that may be entered into by and between two or more county commissions, or between two or more municipalities, or between a county commission and a municipality, in the singular and the plural, or between two or more government entities and the Commissioner of Highways:

(17) “Local levying body” means the county board of education and the county commission and includes the governing body of a municipality when the development or redevelopment district is located, in whole or in part, within the boundaries of the municipality.

(18) “Obligations” or “tax increment financing obligations” means bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a county commission or municipality pursuant to this article to carry out a development or redevelopment project or to refund outstanding obligations under this article.

(19) “Order” means an order of the county commission adopted in conformity with the provisions of this article and as provided in this chapter.

(20) “Ordinance” means a law adopted by the governing body of a municipality in conformity with the provisions of this article and as provided in §8-1-1 et seq.

(21) “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.

(22) “Person” means any natural person, and any corporation, association, partnership, limited partnership, limited liability company, or other entity, regardless of its form, structure, or nature, other than a government agency or instrumentality.

(23) “Private project” means any project that is subject to ad valorem property taxation in this state or to a payment in lieu of tax agreement that is undertaken by a project developer in accordance with a tax increment financing plan in a development or redevelopment district.

(24) “Project” means any capital improvement, facility or both, as specifically set forth and defined in the project plan, requiring an investment of capital including, but not limited to, extensions, additions, or improvements to existing facilities, including water or wastewater facilities, and the remediation of contaminated property as provided for in §22-22-1 et seq.

(25) “Project area” means an area within the boundaries of a development or redevelopment district in which a development or redevelopment project is undertaken as specifically set forth and defined in the project plan.

(26) “Project costs” means expenditures made in preparation of the development or redevelopment project plan and made, or estimated to be made, or monetary obligations incurred, or estimated to be incurred, by the county commission which are listed in the project plan as capital improvements within a development or redevelopment district, plus any costs incidental thereto.

(27) “Project developer” means any person who engages in the development of projects in the state.

(28) “Project plan” means the plan for a development or redevelopment project that is adopted by a county commission or governing body of a municipality in conformity with the requirements of this article and this chapter, or §8-1-1 et seq.

(29) “Real property” means all lands, including improvements and fixtures on them and property of any nature appurtenant to them or used in connection with them and every estate, interest, and right, legal or equitable, in them, including terms of years and liens by way of judgment, mortgage, or otherwise, and indebtedness secured by the liens.

(30) “Redevelopment area” means an area designated by a county commission or the governing body of a municipality in respect to which the commission or governing body has made a finding that there exist conditions which cause the area to be classified as a blighted area, a conservation area, an economic development area, or a combination thereof, which area includes only those parcels of real property directly and substantially benefitted by the proposed redevelopment project located within the development or redevelopment district or land contiguous thereto.

(31) “Redevelopment plan” means the comprehensive program under this article of a county or municipality for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions, the existence of which qualified the redevelopment area as a blighted area, conservation area, economic development area, or combination thereof, and to thereby enhance the tax bases of the levying bodies which extend into the redevelopment area.

(32) “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.

(33) “Tax increment financing fund” means a separate fund for a development or redevelopment district established by the county commission or governing body of the municipality into which all tax increment revenues and other pledged revenues are deposited and from which projected project costs, debt service, and other expenditures authorized by this article are paid.

(34) “This code” means the Code of West Virginia, 1931, as amended by the Legislature.