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VALUATION

The determination of the value of the interest of the State is based upon several factors including the fair market and forced

sale values, other liens having priority over the State tax lien(s), and reasonable expenses of the transaction. The principle

of “first-in-time, first-in-right” is used to determine the priority of all liens and the value of the State’s interest in the property.

ESCROW OF DISPUTED FUNDS

A dispute may exist among competing lienors concerning the value of their liens or their respective rights and priorities in the property.

A partial release may be issued to facilitate a sale of property and, pursuant to agreement of the lienors, the proceeds of sale held in escrow,

and subject to all liens and their respective priorities pending the outcome of the dispute.

FORECLOSING CREDITORS

A foreclosing creditor may avail itself of this administrative process rather than joining the State as a party in a judicial proceeding.

If the interest of the State in the property has no value and the taxpayer is divested of all interest in the property, a partial release may be

issued without payment of even a nominal amount.

INSTRUCTIONS FOR APPLICATION FOR

CERTIFICATE OF RELEASE OF PROPERTY FROM STATE TAX LIEN

The “Application for Certificate of Release of Property for State Tax Lien” should be submitted to: Director, Compliance Division, State

Tax Division; Post Office Box 229, Charleston, West Virginia 25321. The application may be made on the form provided by the State,

or prepared by the applicant, so long as all required information is submitted.

The application must contain the following information:

The name, address, and identification number of the taxpayer.

The name of the legal owner(s) of the property to be released.

The legal description of the property to be released, as contained in the deed to real property, or contract of sale as to

personal property.

A copy or description of each state tax lien to be released including:

- Full amount and identification number of taxpayer

- Amount of each lien

- Lien date, record date, county, and book and page number

All liens or encumbrances, on the property to be released, that have priority over the state tax lien(s), showing

- Name and address of lienor

- Amount and balance due

- Description of lien

- Place and date recorded

The fair market value of the property to be released and evidence thereof.

The amount that will be paid to the State.

The intended distribution of proceeds of transaction.

The date and manner that the taxpayer has been or will be divested of all interest in the property to be released.

10. The location, description and value of other property that will remain subject to the lien(s) to be released.

11. The purpose for which the release is requested.

12. The name, address and telephone number of the applicant, attorney, or representative.

Form Tsd-385 - Application For Partial Release Of State Tax Lien - West Virginia State Tax Department Page 2