Gaining New W.Va. Vehicle Property Tax Credit Calls For Correct Filing 

The state advises that taxpayers pay the half year amount in 2023 to be eligible for the credit on the second half payment next year.

West Virginians are starting to receive their statements of personal property taxes due on vehicles, boats and RVs. But this year, the tax department says just pay the first half for now. 

Beginning on January 1, 2024, taxpayers are eligible to claim a Motor Vehicle Property Tax Adjustment Credit. The first opportunity to claim this dollar-for-dollar credit will be on 2024 state income tax returns, filed in 2025, for all timely paid property taxes on vehicles during the 2024 calendar year.

The state advises that taxpayers pay the half year amount in 2023 to be eligible for the credit on the second half next year. 

Timely in this case means by Oct. 1, 2023, for the first half payment, and April 1, 2024, for the second half payment. People who pay their taxes late won’t get the credit.

The recently passed legislation also includes a new homestead credit for disabled veterans that takes effect Jan. 1, 2024.

State tax officials suggest those qualifying disabled veterans should also wait to pay the second half of their real estate tax until 2024.

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

DMV Launching All-Digital Vehicle Titles, Registration Process

West Virginia is set to become the first state in the country to digitize vehicle titles and the registration process.

West Virginia is set to become the first state in the country to digitize vehicle titles and the registration process.

Drivers across the state can keep a digital copy of their titles on their smartphone as a result.

“This is an absolute milestone, not only for West Virginia, but maybe this entire nation,” Gov. Jim Justice said as he made the announcement during his regular COVID briefing Wednesday.

The registration process will be made available through an online portal on the state Department of Motor Vehicles’ website. Agency commissioner Everett Frazier is spearheading the change, and said it will make the process faster and more secure.

“The DMV processed approximately one million titles last year,” Frazier said. “First it’s sorted, sent to our title and registration section, then to data entry and finally our records department. I found this to be a very time consuming and insufficient process.”

He compared it to the agency’s past work launching the electronic lien and title (ELT) program for lenders.

“Before we implemented the ELT process, it took the DMV 30 to 45 days to process titles,” Frazier said. “Today, that work is being processed within a week.”

No official date has been set for the launch, but the portal is scheduled to be put in place during the first quarter of 2023.

House Bill Overhauls State Vehicle Registry

One of the first bills introduced on behalf of Governor Jim Justice is one aimed at organizing the number of state-owned vehicles. The governor’s version of this bill, House Bill 2492, was introduced in the House of Delegates last week and referred to the committee on Government Organization. But lawmakers in that committee took up a different yet similar bill drafted by members in the House.

Members in the House Government Organization Committee took up a single bill Wednesday morning; House Bill 2004 – to create and maintain a centralized state vehicle inventory system. Under the bill, the data and information regarding state vehicles would be housed in the current Fleet Management Office and would distinguish state, county, and city vehicles with different color plates, much like the system West Virginia has in place today. The problem is that system hasn’t been working the way it’s intended to.

In fact, according to the Legislative Auditor’s Office, the number of state vehicles ranges anywhere between 7,600 to 12,600. Green license plates are how state vehicles are identified, but the problem is organizations that are considered quasi-state agencies, such as community senior centers or public service districts, also get green plates even though the state doesn’t technically own them.

“When the state can’t answer a question of a $200 million plus asset, how much is actually there, we got a problem,” said House Government Organization Chair Del. Gary Howell, R-Mineral, “so we started looking into it. And for the past, roughly ten months, we’ve been working on this with Fleet, DMV, and BRIM trying to come up with a solution.”

Howell is the lead sponsor of House Bill 2004. He says he and other members have also worked closely with the governor’s office in drafting his version of the bill. He says the state hasn’t been tracking the vehicles very closely and considering the state’s budget crisis, Howell says reorganizing the system, or essentially starting the count from scratch, will help.

“It won’t help the budget this year, but next year, once we get a number, we’re gonna be able to look at this and say, here’s some serious cost savings,” he noted, “I expect to save tens of millions of dollars in subsequent years by getting control of the fleet.”

Bob Ashley, who was previously a member of both the House of Delegates and state Senate, is now the governor’s legislative director. He says having so many quasi-state agencies with green-plated vehicles, has posed a real problem that he says is addressed in another version of the bill presented by the governor. That bill would also create a new vehicle registry and change the plates issued to non-state agencies.

“If you’re a state vehicle, you’re a green and white license, if you’re a quasi-state vehicle, you’re a black and white license, and the people will know the difference on the road,” Ashley said.

The two versions of the bill, from Del. Howell and from Gov. Justice, are very similar, but the committee voted to advance the Legislature’s version of the bill.

Ashley says creating a reliable tracking system for state vehicles will save West Virginia taxpayers’ money.

“We’re gonna run it more efficiently,” he said, “The vehicles, Fleet Management will keep an eye, and they do, but they will have an increased look at the gasoline, the usage, the wear-and-tear, when the vehicle’s been serviced; they will also have a better maintenance program for all the vehicles. It is really tightening up to make certain, for the taxpayer, that what vehicles are owned by the state will in fact be taken care of and recognized by the state.”

Five bills have been introduced on the governor’s behalf so far this session, but Ashley says a total of 29 are expected.

Delegates Take First Look at Road Tax Bill

On the final day to approve bills in the chamber, Senators passed out Senate Bill 555. The bill adds a trigger to increase the state’s gasoline tax by 3 cents when the wholesale price of a gallon drops below $2, but also generates dollars for the state road fund through increased taxes and fees.

The bill made its first appearance in a House Finance Subcommittee Friday.

There were seven members on the subcommittee. Initially, the bill only included the gasoline tax increase, but before leaving the Senate it was amended. Senators included increases to Division of Motor Vehicle fees and an increase to the tax on purchasing a vehicle. 

House Finance Chairman Eric Nelson says most of the new revenue would be committed to road maintenance and construction projects.

“Collectively, all of these, so called revenue measures would generate, according to numbers, about $300 million dollars and go into roads,” Nelson said.

All seven members in the House Finance Subcommittee expressed concern with the bill, including Delegate Carol Miller, a Republican from Cabell County.

“I started reading this bill [Thursday] night, at approximately 7:30 p.m., and the more I read, the more I circled, the more I underlined, the more I flagged, and it just went times three, times eight, times negative one percent, up one percent, and, I mean, I stopped flagging after about fifteen, and I just think that there’s too much in this bill to be, without us really understanding the true dollar amount of how many fees we’re gonna put on people,” Miller said.

The subcommittee did vote to move the bill to the full committee, but suggested Chairman Nelson collect more information about the impact of the provisions before putting it to a vote.

“I think any revenue measure is gonna have a word of caution with it,” House Finance Chairman Nelson said, “rightfully so in our tough times, but at the same time, we have a big need as it relates to road maintenance and road construction, and so we’ve got to put everything on the table, and I think that’s what we have in front of us. The reason for the subcommittee is to give it a little extra time, then they can report back to the big committee so that we aren’t rushed into certain decisions.”

Nelson anticipates the full Finance Committee will take up Senate Bill 555 Monday.

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