Personal Property Tax Story Archives - West Virginia Public Broadcasting

Justice Issues Call For 2nd Special Session, Five Items Of Note

Gov. Jim Justice has issued a proclamation calling for the West Virginia Legislature to convene for a second Special Session of the year starting Monday, Sept 30, 2024. Both chambers will gavel in at 11 a.m.

There are 27 items on the call, including one to pay for costs of the session itself. Most of the remaining 26 items are supplemental funding requests with excess revenue from the 2024 fiscal year. Those funds must be appropriated to state programs or sent to line items like the rainy day fund.

The first five items on the call are of special note.

1. Calls for an additional 5 percent personal income tax reduction over and above the 21.25 percent decrease last year and the triggered 4 percent from this summer that was included in the previous cut.

2. Creates a 50 percent child and dependent care credit against the personal income tax.

3. Allows public charter schools to apply for School Building Authority money.

4. Authorizes the state to work with the United States Nuclear Regulatory Commission to create a system for the control of sources of radiation for the protection of the public.

5. Permit the state to develop a clinical opioid treatment program.

Despite numerous calls to address issues relating to homeschooling, Justice said Friday that would be better left to the regular session which begins in February 2025. Justice will no longer be governor at that time.

Read the official call here.

Once the session gets underway, bill status may be found here.

Justice released the following statement:

“As I call this Special Session, the goal is clear that we need to help the hardworking people of West Virginia. I’m hopeful that we can get another personal income tax cut across the finish line. I’ve said it time and again: nothing will help our population grow, create new opportunities, and drive economic progress in West Virginia like eliminating our personal income tax. We’re on the right track, but we need to keep pushing forward. The growth and momentum we’ve built during my time as governor is off the charts. It’s truly been a rocketship ride. We’ve also minded the store, and because of that we now have the opportunity to get these things done.

“We also need to do something to help hardworking families afford childcare. Right now, families across the country are struggling with extreme childcare costs, and we can’t sit on the sidelines and watch it happen in West Virginia. We need to step in and help. That’s why I’m again asking for a childcare tax credit to lower costs for families. This will make things a lot better for working families.

“There are additional things to address, such as more money for our schools and our nurses and getting major water, sewer, and infrastructure projects across West Virginia completed.”

Bill To Raise Taxes On Wind Turbines Advances In Senate

If Senate Bill 231 becomes law, wind turbines would be taxed as real property, not as personal property.

A Senate committee approved a potential tax increase on wind turbines Tuesday.

If Senate Bill 231 becomes law, wind turbines would be taxed as real property, not as personal property.

According to an attached fiscal note, that would increase revenue by $6.1 million annually, funds that would flow to schools, county commissions and the state’s general fund.

However, industry advocates say the move would make wind power less competitive in West Virginia and drive investment to other states.

Wind and solar are currently the cheapest forms of electricity. Supporters of the change say it helps fossil fuels compete with renewables.

The Senate Energy, Industry and Mining Committee approved SB 231 with little debate. The bill now goes to the Finance Committee.

Personal Property Tax Credit Clarified For Taxpayers

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.

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.

County Commission Asks For Change To Tax Credit Law

A provision in House Bill 2526, the personal income tax reduction law passed earlier this year, allows taxpayers to receive a credit on their income taxes for paying their county level personal property taxes. But that is causing confusion for many.

Salango said he has been flooded with calls and emails from residents who already paid their full year’s property tax – which makes them ineligible for the dollar-for-dollar credit in 2024.

To take advantage of the personal property tax credit, the state tax department is advising that taxpayers only pay half of the amount owed this year by Oct. 1, then the other half in 2024 by April 1 to qualify for Motor Vehicle Property Tax Adjustment Credit. However, Kanawha County Commissioner Ben Salango said the West Virginia Legislature needs to make it simpler for taxpayers.

“I think that if they will adjust for law to make sure that even people who pay early, for instance, if they pay in 2023, for personal property tax or automobile tax, in 2024, that they also get that rebate,” Salango said. “And so that’s one of the things we’ve asked the legislature.”

The Kanawha County Commission sent a letter on July 31 to leadership members of the state Senate and the House of Delegates asking for the legislature to make this change in a special session expected to happen next week.

For links to tax forms and details on the net tax credits, click here.

Senate Endorses Property Tax Cut; Justice Plan Stalls

Gov. Jim Justice’s effort to reduce the personal income tax by 10 percent stalls in the state Senate.

Updated on Saturday, July 30 at 9 a.m.

Gov. Jim Justice issued the following statement late Friday night after the West Virginia Senate declined to take up his proposal to permanently reduce the personal income tax by 10 percent:

“I continue to believe with all in me that West Virginia can be like Florida, Texas, and Tennessee – with a booming economy and population, built on people moving into states with no personal income tax. We have the best people, best natural resources, four of the best seasons, and are located within a rock’s throw of two-thirds of our country’s population. Without a personal income tax, our potential is limitless.”

Gov. Jim Justice’s effort to reduce the personal income tax by 10 percent has stalled in the state Senate.

Thursday, the West Virginia House of Delegates passed House Bill 301, which would lower the personal income tax by an aggregate of 10 percent across all wage earners in the state.

Instead of taking up that bill, the state Senate passed a resolution that says lowering property taxes is a more effective way of helping the people of West Virginia than lowering income taxes.

In November, voters will have the opportunity to vote on giving the legislature the power to make changes to property taxes. It is called the Property Tax Modernization Amendment.

Part of the resolution reads:

“Ratification of the Property Tax Modernization Amendment would give the Legislature the authority to exempt certain classes of personal property from taxation. Specifically, passage of Amendment Two would allow for the elimination of personal property tax on the following six categories of personal property: machinery and equipment, furniture and fixtures, leasehold investments, computer equipment, inventory, and motor vehicles”

The resolution also suggests that if voters approve the property tax amendment to the state constitution,

“…the Senate also supports establishing an immediate process to refund to taxpayers the amount of personal property tax attributable to the taxpayer’s motor vehicle on their 2020 personal property tax ticket.”

According to the resolution, the relief for businesses choosing to do business in West Virginia is estimated to be approximately $500 million if that happens. Justice said the effort to reduce the income tax in the state would have reduced revenue by $254 million. West Virginia closed the last fiscal year that ended on June 30 with a $1.3 billion revenue surplus.

Neither the House of Delegates nor Justice have responded to this change by the Senate.

Editor’s Note: This story was updated to reflect Gov. Jim Justice’s statement.

Legislative Priorities: Relaxed COVID Protocols, A Tax Repeal, Broadband Expansion And A Possible Raise For State Workers

West Virginia lawmakers are hoping for a more normal legislative session in 2022 with some relaxed COVID-19 protocols at the statehouse. There’s also renewed hope to reduce or eliminate the personal income tax.

State lawmakers from the Eastern Panhandle met for a Legislative Outlook event over Zoom on Friday. The Martinsburg-Berkeley County Chamber of Commerce hosts these events every year ahead of the state legislative session, which begins in mid-January.

The Eastern Panhandle is home to several of the legislature’s key leadership members, such as Senate Judiciary Chair Charles Trump, R-Morgan. Trump said visitors to the capitol this year will likely get to roam the marble halls as they have in years prior to the pandemic.

“I do not think we’re gonna see restrictions on the number of people in the building. There may be, room by room, some limitations on how many people can be jammed into a particular room,” Trump said. “But I’m hoping that we’re going to see some relaxation from what we had early this year.”

It’s not yet clear if masks will be required of visitors.

For Trump, his biggest priority this year will be to follow-up on a resolution passed last session that will allow West Virginia voters to decide in the November general election if the legislature can amend the state’s constitution to reduce the personal property tax on machinery, equipment, inventory and vehicles.

Trump said it will be prudent for lawmakers to be transparent with voters about what the change to the tax could mean.

“I know there is some nervousness among school boards, county commissions and municipalities who are the recipients of those levy monies,” Trump said. “And it’s incumbent upon us to lay out in a statute this year, the specific plans – how those taxes would be reduced [and] how the legislature will replace the funding.”

On the flip side of the discussion over personal property tax, something that did not make it out of the legislature last year was a repeal to the state’s personal income tax. In a surprising turn of events, the bill to repeal the income tax was dramatically shot down in the House of Delegates on the final night of the 2021 session.

House Majority Whip Paul Espinosa, R-Jefferson, said he thinks this issue will be revisited this year.

“Talking with our colleagues in the Senate, talking with the governor’s office [about the] personal income tax, I think there’s still a strong appetite in both chambers,” Espinosa said of a potential repeal.

Education will also likely be top of mind for lawmakers this session.

Senate Education Chair Patricia Rucker, R-Jefferson, said her goals will be to tweak and strengthen past legislation. She said she hopes to perfect a bill that requires cameras in special education classrooms, and she also wants to introduce legislation that she says would “tighten” physical education requirements in schools.

Additionally, Rucker said a big priority will be to reform the higher education funding model.

“I’m really hopeful we’re going to find a funding model that is going to fund higher education in a fair way, that is going to take partisan politics [and] take political influence out of the equation,” Rucker said. “It’s going to be based on whether the institutions are fulfilling their missions [and] doing what they set out to do and helping students graduate.”

Charter school expansion in West Virginia, which was one of the bigger topics in education last session, will not likely be a topic this year, according to Rucker.

Lawmakers also mentioned their hopes to tackle other issues such as more broadband expansion, with the goal of getting high speed internet in every West Virginia home.

Rucker said there are also discussions happening about salary increases for public employees, including teachers.

The 2022 West Virginia Legislative session will begin on Jan. 12.