West Virginia Code § 11-5-13

Exemption of inventory and warehouse goods
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(a) Tangible personal property which is moving in interstate commerce through or over the
territory of the State of West Virginia, or which was consigned from a point of origin outside
the state to a warehouse, public or private, within the state for storage in transit to a final
destination outside the state, whether specified when transportation begins or afterward,
but in any case specified timely for exempt status determination purposes, sehall not be
deemed to have acquired a tax situs in West Virginia for purposes of ad valorem taxation and
shall be exempt from such taxation, except as otherwise provided hereirn.
(b) Such property shall not be deprived of such exemption becauuse while in the warehouse
the personal property is assembled, bound, joined, processed, disassembled, divided, cut,
broken in bulk, relabeled, or repackaged for delivery out of sttate, unless such activity results
in a new or different product, article, substance or commodity, or one of different utility.
(c) Personal property of inventories of natural resources shall not be exempt from ad
valorem taxation unless required by paramount fedleral law.
(d) The exemption allowed herein shall be phased in over a period of five consecutive
assessment years, at the rate of one fifth oif the assessed value of the property per
assessment year, beginning July 1, 1g987.

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