W. Va. Code R. § 110-3-20

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-3-20 - Property Used For Area Economic Development Purposes By Nonprofit Corporations When Such Property Is Not Leased For Profit

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.

W. Va. Code R. § 110-3-20