West Virginia Motor Vehicle Property Tax Credit: Confusion Cleared

West Virginia Governor Jim Justice recently signed into law House Bill 125 to clear up confusion regarding the West Virginia motor vehicle property tax credit. The new bill clears up the confusion related to the timing of when taxpayers choose to pay their property tax bill.

West Virginia Motor Vehicle Property Tax Credit: What The New Bill Says

On Wednesday, Governor Justice signed House Bill 125 into law. This law is basically an update to the West Virginia Motor Vehicle Property Tax Adjustment Credit that clears up confusion for taxpayers who pay their property tax bill immediately when they get it.

Now, taxpayers who have paid, in 2023, their motor vehicle property taxes due in 2024, will be allowed to claim the credit on their 2024 income tax return.

Dave Hardy, Cabinet Secretary for the West Virginia Department of Revenue, joined Governor Justice to explain how the West Virginia motor vehicle property tax credit works. The credit is available only for the actual tax paid. In case of an early payment discount, the credit is limited to the amount paid after reducing the discount.

Hardy noted that residents have two options to receive the rebate:

  • Those who pay their personal property tax in full by Oct. 1, 2023, will qualify for a 50% credit against their 2024 state income tax.
  • Residents also have the option to pay half of their 2023 personal property tax by Oct. 1, 2023, and the remaining by April 1, 2024. Such people may still qualify for a 50% credit against their 2024 state income tax.

“We should never punish someone for paying their taxes on time, and this bill ensures that we are treating all taxpayers fairly,” Governor Justice said.

Hardy noted that 2024 will be the transition year, and thus, every year after 2024, the rebate will incrementally rise from 50% to 100%.

Who Will Get The Credit?

West Virginians need to file their income tax returns every year to receive the credit. The state income tax return in 2024 will have a separate line to make it easier for West Virginians to claim the personal property tax credit.

Even those who don’t owe income tax or are not required to file a WV income tax return can file the form online or by paper to get the West Virginia motor vehicle property tax credit.

A point to note is that everyone, except car dealers, is eligible for the credit. Those who lease their cars need to know that the leasing companies will be eligible for the credit. Leasing companies, however, are required to pass on the benefits to the customers.

Visit tax.wv.gov, or call Taxpayer Services Representative at 304-558-3333 (or toll-free at 800-982-829) for more information on the West Virginia motor vehicle property tax credit.

This article originally appeared on ValueWalk

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Source: Read Full Article