Senate Agriculture committee approves substitute for SB 898 to value farm buildings at salvage value

The Senate Agriculture Committee approved a committee substitute for Senate Bill 898 that would direct the tax commissioner to value buildings and structures located on farm property and used exclusively in agriculture at their salvage value for property-tax purposes.

Committee counsel told the panel the substitute relocates relevant language to the portion of state code that governs property appraisal, adds a definition of "salvage value," and removes a prior provision the counsel described as unconstitutional. "This bill modifies the procedure by which the tax commissioner values farm property," the counsel said, describing barns, stables and silos and other farm structures as included.

The chair then recognized the senator from Upshur, who asked whether the proposed salvage valuation matched treatment previously applied to windmills. Committee counsel replied that it did, citing other code classifications taxed as salvage — for example, certain pollution-control facilities and aircraft property — and noting similar treatments for some high-technology servers. "We also do it for certain servers that are used in high technology businesses," the counsel said.

After no amendments were offered, the committee voted to agree to the substitute. The vice chair moved that the substitute be reported to the full Senate with a recommendation that it pass and, under the bill's original double reference, first be referred to the Finance Committee. The chair called the question, members voiced "aye," and the motion was declared adopted; the committee substitute will be reported to the Senate.

The committee took no further action on other topics and adjourned.