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Publication TSD-385

West Virginia

(September, 1992)

Department of

Tax and Revenue

PARTIAL RELEASE OF PROPERTY FROM STATE TAX LIEN

The State Tax Commissioner has the authority to issue a certificate of release of any state tax lien, created under West

Virginia Code §11-10-12(a). The State Tax Commissioner may issue a certificate of release as to part of the property subject

to the lien. West Virginia §11-10-12(d). This certificate of release of specific property is also referred to as a “partial release.”

This publication is not a substitute for the law or regulations.

EFFECT

A partial release removes or discharges certain specific property from the effect of the tax lien, while the lien remains

in full force and effect upon all other property or rights to property to which it has attached. A partial release is distinguished

from a “release”, which completely extinguishes the lien, and a “subordination”, which continues the effect of the lien on the

property but relegates it to a lower priority against another lien.

CONDITIONS

This partial release may only be issued under two conditions specified by statute.

West Virginia Code §11-10-12(d).

There is paid to the State an amount not less than the value of the interest of the State in such property;

The interest of the State in such property has no value.

However, any such partial release is discretionary, and the State may impose any other conditions that may facilitate

collection of the tax or be in the best interest of the State.

APPLICATION

The partial release will only be issued upon application giving sufficient information for the State to determine the value

of the States interest in the property, the amount to be paid to the State and that conditions for release are satisfied. The

Application and all supporting information must be submitted to: Director, Compliance Division; State Tax Division; Post

Office Box 229, Charleston, West Virginia 25321-0229. The State will not issue a release or make any commitment to issue

a release in the absence of an application.

DETERMINATION

The State will evaluate the application to determine whether to issue the release and will advise the applicant of its

determination. A person requesting a release should allow 15 days for consideration of the application.

PAYMENT

The State will usually require payment prior to delivering a partial release, if the release is issued because the State is

paid any amount. Payment must be made by cash; certified, cashier's or treasurer's check; or money order. Payment by

personal check may delay delivery of the release until the bank honors the check. If the interest of the State has no value,

the State will generally require payment of a nominal amount, which is 10% of the amount due or $500, whichever is greater.

This minimum payment is not required if the property remaining subject to the lien has a fair market value of at least twice

the amount of all liens and encumbrances against the property. The State will not issue a partial release if the amount of

the lien(s) is less than $1,000.

CONDITIONAL COMMITMENT

The State may issue a conditional commitment to issue a partial release, so that the applicant can proceed with any pending

transaction and rely upon the commitment of the State to issue the release upon payment of funds generated by the

transaction. The commitment will generally state that the release will be delivered when the State is paid a specified amount

and when the taxpayer is divested of any interest in the property. When the transaction is completed and the State receives

its payment, the release will be issued in accordance with the commitment letter.

Form Tsd-385 - Application For Partial Release Of State Tax Lien - West Virginia State Tax Department

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