Current through Register Vol. XLI, No. 38, September 20, 2024
17.1. In
order for this exemption to apply the property in question must:
17.1.1. Belong to or be held in trust for a
college or university which is located in West Virginia; or
17.1.2. Belong to or be held in trust for any
public or private nonprofit foundation or corporation which receives
contributions exclusively for a college or university which is located in West
Virginia but only if the property or the dividends, interest, rents or
royalties which are derived from the use of such property is used or devoted to
the educational purposes of the college or university.
17.2. Property belonging to a college or
university must belong exclusively to that institution; otherwise, the entire
property value may not be exempt. Likewise, property held in trust for a
college or university must be held in trust exclusively for such institution.
No proceeds of the trust may inure to the benefit of other person, public or
private.
17.3. Property belonging
to or held in trust for a public or private nonprofit foundation or a public or
private nonprofit corporation must belong exclusively to or be held in trust
exclusively for such entity; otherwise, the entire property value may not be
exempt.
17.3.1. Partial ownership or
beneficiary status shared with any other person will destroy the exemption
insofar as it concerns the value of the property not owned or held intrust for
such public or private nonprofit foundation or public or private nonprofit
corporation.
17.3.2. The public or
private foundation or the public or private corporation must be organized and
operated on a nonprofit basis in accordance with W. Va. Code '31-1-1 et
seq.
17.3.3. The public or private
nonprofit foundation or the public or private nonprofit corporation must be a
resident of West Virginia.
17.4. Only the value of the property, as
determined by the extent to which the property, or the dividends, interest,
rents or royalties derived therefrom is used for the educational purposes of
the colleges or university, may be exempt from tax.
17.4.1. Example. Property may belong to a
university but be leased to a mining company for coal mining purposes. The
interest of the mining company is subject to taxation.
17.4.2. Example. Property may belong to a
private nonprofit corporation which receives contributions exclusively for a
college or university. West Virginia Code '11-3-9 envisions the property will
be used in such a manner that the proceeds derived from such use will be
devoted to or used for the educational purposes of the college or university.
In order to comply with the constitutional requirement that the property be
used for educational purposes in order to be exempt, it is necessary to
identify and distinguish the purposes in order to be exempt, it is necessary to
identify and distinguish the value of the exempt use and the total value of all
uses to which the property is subject, with the result that the value of all
nonexempt uses will be subject to tax.
17.4.2.1. It is irrelevant to the question of
exempting the entire value of the property that the private nonprofit
corporation or foundation receives nominal or minimal contributions exclusively
for a college or university located in West Virginia, or that such college or
university receives such contributions directly from another source. The
property value exempt from taxation shall not include the value of the
nonexempt uses.
17.4.2.2. It is
irrelevant that the private nonprofit corporation or foundation, or the college
or university located in West Virginia, is paid nominal or minimal dividends,
interest, rents or royalties from the use of the property. Only that portion of
the value of the property as represented by the amount the dividends, interest,
rents and royalties received and used or devoted to the educational purposes of
the college or university bears to the total value of the property may be
exempt from ad valorem property taxation.
