Personal Property Tax Credit Clarified For Taxpayers

After taxpayers and county sheriffs expressed confusion over the West Virginia Motor Vehicle Property Tax Adjustment Credit, the West Virginia Legislature passed a bill to straighten it out in the recent special session. 

Gov. Jim Justice signed the bill Wednesday. 

 “This is an example of good government,” Justice said. “We recognized a problem and fixed it as fast as we could. This bill brings clarity and relief to West Virginia taxpayers and allows everyone to pay their full vehicle property tax this year without being penalized. We should never punish someone for paying their taxes on time, and this bill ensures that we are treating all taxpayers fairly.”

Now all motor vehicle property taxes due in 2024 but paid in 2023 may be claimed as a credit on a taxpayer’s 2024 income tax return. This issue first came up when the legislature proposed doing away with the personal property tax as a tax reduction measure, but county officials voiced concern about the loss of revenue. This taxpayer credit won’t harm country governments and school boards. 

Taxpayers can pay the full ticket now or pay half in 2023 and half by April 1, 2024. Taxpayers who pay their personal property taxes on time will receive a rebate on their 2024 income tax return — even if the second half was paid in 2023. That is the return that taxpayers file in 2025. 

Everyone is eligible for this credit except for motor vehicle dealers. Leasing companies are eligible for the credit and are required to pass the savings on to the consumer.

Any taxpayers that do not owe West Virginia income taxes and are not required to file a state income tax return will be able to file a claim for rebate in early 2025 of their motor vehicle property taxes paid without having to file a full return. 

Continue to check tax.wv.gov for more information and form requirements as they become available.