West Virginia Code 11-13DD-4 – Determination of value of credit
(a) The donor shall determine the value of the donated edible agricultural products as follows:
Terms Used In West Virginia Code 11-13DD-4
- Agriculture: means the cultivation of the soil, including the planting and harvesting of crops and the breeding and management of livestock. See West Virginia Code 11-5-3
- Department: means the Department of Agriculture. See West Virginia Code 11-13DD-2
- Donee: The recipient of a gift.
- Donor: means a qualified taxpayer who provides free of fee or charge edible agricultural products to a nonprofit food program operating in West Virginia. See West Virginia Code 11-13DD-2
- Donor: The person who makes a gift.
- Edible agricultural products: means fruits, vegetables, beef, poultry, pork, fish or any other edible product raised or grown in West Virginia that is intended for, and fit for, human consumption. See West Virginia Code 11-13DD-2
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Farming taxpayer: means a West Virginia taxpayer responsible for, and deriving income of, at least $1,000 from growing fruits, vegetables or other edible agricultural products or from raising beef, poultry, pork, fish or other edible agricultural products. See West Virginia Code 11-13DD-2
- Nonprofit food program: means a surplus food collection and distribution program operated and established to collect donated food for redistribution to persons in need and is recognized as exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code. See West Virginia Code 11-13DD-2
- Value: means in the case of any document not a gift, the amount of the full actual consideration for the document, paid or to be paid, including the amount of any lien or liens assumed. See West Virginia Code 11-22-1
(1) If there was a previous sale of the edible agricultural products to a buyer, the donor should retain a copy of an invoice or other statement identifying the price received by the donor for the edible agricultural products of comparable grade or quality; or
(2) If there is no previous sale to a buyer, the donor shall on the date of the donation, determine the value of the donated edible agricultural products based on the fair market value as determined by average weekly regional produce auction prices or United States Department of Agriculture prices for meat, fish and dairy products.
(b) At the time of the donation, the donor shall provide to the nonprofit food program the estimated value of the donated edible agricultural products as determined herein. The nonprofit food program shall provide to the donor a signed and dated form prescribed by the department containing at a minimum:
(1) The type and quantity of product donated;
(2) The name, address and taxpayer identification number of the donor or donors;
(3) The name and address of the donee nonprofit food program; and
(4) The estimated value of the donated edible agricultural products, as provided by the donor.
(c) To claim the tax credit, a qualified farming taxpayer shall send the donation form from the nonprofit food program to the department for certification.