State tax credit changes

Please take a moment to read about the STATE TAX CREDITS passed by WV Legislation in March 2023 (11B 2526) which includes Vehicles, Small Businesses and Disabled Veterans.

To Potentially Qualify for Refundable Income Tax Credits:

• File Personal Property Assessments timely
  1. July 1- Sept 1 (Business)
  2. July 1-Oct 1 (Individual)
• Pay Timely
  1st half before Oct 1
  2nd half before April 1
• 1st Personal Property tax payment to qualify for any refundable income tax credit is 2 half of 2023

Personal Property Tax PAID January 2024-March 31, 2024

No credit will be issued for any Personal Property taxes paid before January 1, 2024 Credits will not be issued until 2025.

Types of Refundable Credits beginning January 2024

• Motor Vehicle Property Tax Credit
  Who qualifies? Individual motor vehicle owners and Small Business Motor Vehicle owners. What motor vehicles qualify? See back for more information.

• Disabled Veterans Real Property Credit
  Who qualifies? Any Veteran who is considered 90-100% disabled by the Department of Veteran Affairs and has been honorably discharged from any branch of armed services in the US. What qualifies? Owner occupied PRIMARY residential real property (Class li)- taxes paid timely.

• Small Business Property Tax Credit
  Who qualifies? Small businesses with an aggregate personal property appraised value of I million dollars or less. Persons holding a working interest in oil and natural gas, or natural gas liquids-producing properties and/or public service companies that are centrally assessed by the state for personal property tax purposes DO NOT QUALIFY.
  What qualifies? 50% of the amount of WV Personal Property taxes due and timely paid to a county sheriff by the eligible taxpayer on the taxpayer’s personal property.

Effective 2023 Tax Year

NADA values have increased based on July 1, 2022, for the 2023 tax year. It is possible that you will see an increase in the value of your vehicles on your 2023 tax bill.

On September 15, 2021, Governor Justice issued Executive Order No. 25-21 that addressed the nationwide, inflated vehicle values due to supply issues created from the coronavirus pandemic. This executive order directed the State Tax Commissioner to compile a schedule of automobile values based upon the lowest values shown in a nationally accepted used car guide (NADA) from the current year or the previous year, whichever was lower. The State Tax Commissioner found that the values from the previous year were lower. Therefore, we used the NADA values from July 1, 2020, for the 2022 tax bill.

Unfortunately, some of the values have not decreased in the last year, The Executive Order was a one-time deal in the hopes that the market would recover.

This publication provides general information and is not meant to be a substitute for tax laws or regulations Beginning January 1, 2024, taxpayers are eligible to claim a Motor Vehicle Property Tax Adjustment Creda The first opportunity to claim this credit will be on a 2024 WV income tax return, filed in 2025, for all timely paid property taxes made on vehicles in the 2024 calendar year The same rules will apply for all following years

Who Qualifies?

Individuals, Partnerships, S-Corporations, LLCs, and C-Corporations Leasing companies qualify for the credit. They are required to pass the savings on to the consumer leasing the motor vehicle Contact your leasing company for more information on when you can expect to see the discount

Who Does Not Qualify? Motor Vehicle Dealers

The first molar vehicle property tax payment that will be eligible to qualify for the credit is the payment made for the second half of the 2023 property tax year and it must be paid between January 1-April 1, 2024 Any property taxes paid in 2023 cannot be claimed

Only Individuals and business motor vehicle owners may qualify for the Motor Vehicle Property Tax Adjustment Credit. The credit is only available for the actual tax paid. If an early payment discount is applied, the credit is limited to the amount actually paid after the deduction of the discount. The following Motor Vehicle classifications, which can also be found online at transportation.wv.gov, are eligible for the credit.

Class A: Cars and Trucks: Passenger cars and trucks with a gross weight of 10,000 pounds or less.

Class B: Trucks: Trucks truck tractors, or road tractors with a gross weight of 10.001 pounds or more.

Class G: Motorcycles: Every motorcycle, including motor-driven cycles and mopeds, has a saddle and no more than three wheels

Class H: Buses: Every motor vehicle designed for carrying more than seven passengers or transportation of persons for compensation, excluding taxicabs.

Class T: Trailers: Trailers, boat trailers or semitrailers of a type designed to be drawn by Class A vehicles with a gross weight of less than 2,000 pounds.

Class V: Antique Motor Vehicles: Antique motor vehicles are at least 25 years old.

Class X: Farm Trucks: Used exclusively for the transportation of farm products and supplies by a farmer.

W. Va. Code § 20-15-2: All-Terrain Vehicles: Any motor vehicle designed for off-highway use and to travel on not less than three low-pressure tires, having a seat designed to be straddled by the operator and handlebars for steering control and intended by the manufacturer to be used by a single operator or by an operator and no more than one passenger

Vehicles that do not qualify for the credit include but are not limited to Class C (trailers and semi-trailers). J (taxi cabs). M (mobile equipment) and R (travel trailer) vehicles. To learn more about vehicle classifications, visit transportation.wv.gov.

Taxpayers that do not owe WV income taxes and are not required to file a WV income tax return will be able to file a claim for a rebate in early 2025 of their Motor Vehicle property taxes paid. Continue to check tax.wv.gov for more information and form requirements as they become available.

For more information, you can call a Taxpayer Services Representative at (304) 558-3333 or toll-free at (800) 982-8297. Email taxhelp@wv.gov or go online to tax.wv.gov.