WV Farm Bureau Magazine January 2016 | Page 41

an as-occurring basis on net receipts as recorded on 1099s for oil & gas ad valorem taxes. 178. SPECIAL CHARGES FOR MUNICIPAL SERVICES West Virginia Farm Bureau recommends the repeal of WV Code 8-13-13 and clarification that the authority to collect fees ends when the law is repealed. We recommending replacing the repealed law with legislation that: • • • • • • Reduction in rate per man hour VFDs and EMSs must pay for worker’s compensation Legally enforceable ability for VFDs and EMSs to collect reimbursements, including from insurance companies, for services rendered on all types of calls Provides representation for people who are assessed taxes by bodies, i.e., county commissions, city councils, public service commissions, etc. Allows rural and municipal VFDs to receive taxes equally Provides fair and equal taxation of all taxpayers – cities cannot charge more outside of city limits than inside of city limits Keeps taxes on a particular type of property in proportion to the type of call (e.g., a city cannot finance 90% of their budget from fire taxes on structures if only 5% of their calls are structure fires) 179. AGRICULTURAL LAND & REAL ESTATE TAXATION Real estate taxation should be fair and in conformity with existing constitutional limitations. It is fundamental to remember that property owners also pay all other taxes. The farmer is especially vulnerable to unfair property tax or assessments because of the amount of land necessary to farm. West Virginia Farm Bureau endorses the statewide review of taxation, but believes the fair treatment of owner occupied residences and farmland is essential to stable rural communities and must remain so. Dwellings that are not owner occupied are taxed at the Class III rate, even if the dwellings do not generate any income. We recommend that all non-income producing dwellings be taxed at the Class II rate. Agricultural land and managed forestland should be valued as a tool in the production of food and fiber – not on a speculative or other potential use basis. We oppose any change in West Virginia’s property tax methodology, particularly for farmland and managed timberland, which would depart from the “presentuse” method of arriving at value. Property taxes are slowly, but constantly, increasing each year. The WV State Tax Department is pressuring local assessors to increase property tax assessments. Reassessment is limited to occur once every ten (10) years. Only elected officials should be able to raise taxes, not appointed officials who are not held accountable to taxpayers. Taxes from farm and forestland, presently and historically, generate much more in tax revenue than they demand in services compared to suburban and urban acreage. Therefore, we support the pursuit of a fair and equitable property tax law, for rural landowners. When farm use valuation has been established by meeting federal guidelines, we recommend automatic renewal unless use or ownership changes. WVFB recommends that the State Tax Department enforce its current farm use valuation policy uniformly across the state. Timber from farm woodlots should be considered an agricultural crop for the purposes of farm use valuation. In the year that a timber sale occurs and income from timber sales from farm woodlots exceeds other agricultural production, timber sales should be pro-rated or averaged by the number of years since the last harvest, rather than on an annual basis when determining farm use valuation. We oppose any excess acreage tax as negatively affecting agriculture or economic development. We further recommend that retired farmers or farmers approaching retirement age be encouraged through tax incentives favorable with respect to the landowner to keep their farmland in production. Farm Bureau supports legislation that would allow property taxes to be paid on a monthly installment basis at the option of the landowner. Property tax shall not be assessed against private individuals for any land used exclusively for drilling, mineral extraction or utilities, including pads, rightsof-way, roads and pipelines. 180. IMPACT FEES West Virginia Farm Bureau believes impact fees should be used in growth counties for necessary West Virginia Farm Bureau News 41