401-489, Settimi v. State Tax Commissioner, Supreme Court of Appeals of West Virginia
Case brief introduction:
Property: Taxability of property and persons: Agriculture: Farm use valuation.– For West Virginia property tax purposes, the circuit court did not err in finding that the taxpayer's property did not qualify for farm use valuation because it was not used primarily for farming purposes. The assessor denied the taxpayer's application for farm use valuation for the tax year 2020 because there was no sign of farming being done. The Tax Commissioner ruled that the taxpayer failed to satisfy the requirements for qualification for farm use valuation and confirmed that denial. the circuit court found that the taxpayer's property did not meet the definition of a "farm," was not being used for "farming purposes," did not have at least 50% of total gross sales from agricultural products per year, and did not produce agricultural products worth at least $1,000 per year. Therefore, the circuit court affirmed the commissioner's determination. The Supreme Court noted that the pre-production rule excused the taxpayer from meeting the $1,000.00 annual farm production test. However, the majority of the taxpayer's income came from non-farm ranch activities, and even if sales of distilled spirits could be counted as sales of agricultural products, the property failed to meet the requirement that at least 50% of the total annual gross sales must be from agricultural products. Accordingly, the Supreme Court affirmed the circuit court's decision