West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-03 - Exemption Of property from ad valorem property taxation
Section 110-3-16 - Property Belonging To, Or Held In Trust For, Colleges, Seminaries, Academies And Free Schools, If Used For Educational, Literary Or Scientific Purposes, Including Books, Apparatus, Annuities And Furniture

Universal Citation: 110 WV Code of State Rules 110-3-16

Current through Register Vol. XLI, No. 38, September 20, 2024

16.1. Property used for educational, literary, scientific, religious or charitable purposes under this section must be property in actual direct use, and such use must be primary and immediate and not secondary or remote.

16.1.1. For example: If a college were to purchase a tract and initiate the construction of a building which is to be used for educational, literary or scientific purposes, the property would not be exempt from taxation until the exempt use actually occurred. If, however, those purposes were not to be the end use of the building, the property would not be exempt.

16.2. If a college owning a tract of property with a building on it were to lease the property to a commercial business, reserving a basement room for use as a classroom, the property would not be exempt from taxation. The primary and immediate use of the property would be commercial leasing. The educational use would be secondary and remote.

16.3. If a college, seminary, academy or free school were to lease a tract of property to a commercial user and apply the rents thereby derived for educational purposes, the property would not be exempt from taxation. The primary and immediate use of the property would be commercial leasing. The educational use would be secondary and remote because it would be use of income rather than the property itself.

16.3.1. The term "education" as used in these regulations does not include courses of study not reasonably calculated to develop knowledge or skills resulting in actual gainful employment of students upon completion of training. However, this Subsection should be read in conjunction with Subsection 2.20.

16.3.2. For example: Academies providing traditional formal education or vocational training in bookkeeping, automotive repair, electrical appliance repair, meat cutting, or electrical wiring are "for the purpose of education" within the meaning of this section because such training is reasonably calculated to develop knowledge or skills resulting in actual gainful employment of students upon completion of training.

16.4. A college, seminary, academy or free school offering a program reasonably calculated to develop knowledge or skills resulting in actual gainful employment of students upon completion of training may offer incidental or ancillary courses in subjects not directly related to such programs so long as the predominant course of study is educational as defined in these regulations.

16.4.1. For example: An academy offering a traditional formal educational program of literature, mathematics, art, physical education, composition, languages and similar subjects will not lose its exempt status if it offers ancillary courses in frisbee throwing, hang gliding, horsemanship, or similar nontraditional or nonvocational courses so long as the traditional course of study remains predominant.

16.5. All real property exemptions under this Section apply to individual, discrete tracts. There shall be no split-listings or allocations of use on a pro rata or other basis exempting part of a tract and making the remainder of the tract subject to taxation.

16.5.1. For example: If a college using a building for educational purposes should lease twenty-five percent (25%) of the floor space of the building to a commercial business, no allocation may be made whereby seventy-five percent (75%) of the building is treated as exempt and twenty-five percent (25%) is subject to taxation. A determination must be made as to whether educational use of the property is primary and immediate. Since seventy-five percent (75%) of the property is used for educational purposes, the chief, main or principal use of the property is educational. The property, therefore, in its entirety, would be exempt. If, however, fifty percent (50%) or more of the floor space available for commercial and exempt use is not used for educational, literary or scientific purposes, the property would not be exempt.

16.6. Property used by a commercial (for profit or private gain) college, seminary, academy or free school is exempt if used for educational, literary or scientific purposes.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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