HB2127 INTR

H. B. 2127

(By Delegate Linch)

[Introduced January 13, 1999; referred to the

Committee on the Judiciary then Finance.]

A BILL to amend and reenact sections two, three and four, article six-b, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to taxation; homestead property tax exemption; and granting the exemption to disabled veterans under the age of sixty-five years.

Be it enacted by the Legislature of West Virginia:

That sections two, three and four, article six-b, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:

ARTICLE 6B. HOMESTEAD PROPERTY TAX EXEMPTION.

§11-6B-2. Definitions.

For purposes of this article, the term:

(1) "Assessed value" means the value of property as determined under article three of this chapter.

(2) "Claimant" means a person who is age sixty-five or older or who is certified as being permanently and totally disabled, and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes, or a person who is under sixty-five years of age, a veteran as that term is defined in section seven, article one, chapter nine-a of this code, disabled pursuant to the provisions of Title 38, United States Code and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes.

(3) "Homestead" means a single family residential house, including a mobile or manufactured or modular home, and the land surrounding ~~such~~ the structure; or a mobile or manufactured or modular home regardless of whether the land upon which ~~such~~ the mobile or manufactured or modular home is situated is owned or leased.

(4) "Owner" means the person who is possessed of the homestead, whether in fee or for life. A person seized or entitled in fee subject to a mortgage or deed of trust shall be ~~deemed~~ considered the owner. A person who has an equitable estate of freehold, or is a purchaser of a freehold estate who is in possession before transfer of legal title shall also be ~~deemed~~ considered the owner. Personal property mortgaged or pledged shall, for the purpose of taxation, be ~~deemed~~ considered the property of the party in possession.

(5) "Permanently and totally disabled" means a person who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental condition which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months.

(6) "Sixty-five years of age or older" includes a person who attains the age of sixty-five on or before the thirtieth day of June following the July first assessment day.

(7) "Used and occupied exclusively for residential purposes" means that the property is used as an abode, dwelling or habitat for more than six consecutive months of the calendar year prior to the date of application by the owner thereof; and that the property is used only as an abode, dwelling or habitat to the exclusion of any commercial use: Provided, That failure to satisfy this six-month period ~~shall~~ may not prevent allowance of a homestead exemption to a former resident in accordance with section three of this article.

(8) "Tax year" means the calendar year following the July first assessment day.

(9) "Resident of this state" means an individual who is domiciled in this state for more than six months of the calendar year.

§11-6B-3. Twenty thousand dollar homestead exemption allowed.

(a) General. -- An exemption from ad valorem property taxes shall be allowed for the first twenty thousand dollars of assessed value of a homestead that is used and occupied by the owner thereof exclusively for residential purposes, when ~~such~~ the owner is sixty-five years of age or older or is certified as being permanently and totally disabled or a person who is under sixty-five years of age, a veteran as that term is defined in section seven, article one, chapter nine-a of this code, disabled pursuant to the provisions of Title 38, United States Code and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes provided the owner has been or will be a resident of the state of West Virginia for the two consecutive calendar years preceding the tax year to which the homestead exemption relates: Provided, That an owner who receives a similar exemption for a homestead in another state is ineligible for the exemption provided by this section. The owner's application for exemption shall be accompanied by a sworn affidavit stating that ~~such~~ the owner is not receiving a similar exemption in another state: Provided, however, That when a resident of West Virginia establishes residency in another state or country and subsequently returns and reestablishes residency in West Virginia within a period of five years, ~~such~~ the resident may be allowed a homestead exemption without satisfying the requirement of two years consecutive residency if ~~such~~ the person was a resident of this state for two calendar years out of the ten calendar years immediately preceding the tax year for which the homestead exemption is sought. Proof of residency includes, but is not limited to, the owner's voter's registration card issued in this state or a motor vehicle registration card issued in this state. Additionally, when a person is a resident of this state at the time ~~such~~ the person enters upon active duty in the military service of this country and throughout ~~such~~ the service maintains this state as his or her state of residence, and upon retirement from the military service, or earlier separation due to a permanent and total physical or mental disability, ~~such~~ the person returns to this state and purchases a homestead, ~~such~~ the person is ~~deemed~~ considered to satisfy the residency test required by this section and shall be allowed a homestead exemption under this section if ~~such~~ the person is otherwise eligible for a homestead exemption under this article; and the tax commissioner may specify, by ~~regulation~~ rule promulgated under chapter twenty-nine-a of this code, what constitutes acceptable proof of these facts. Only one exemption shall be allowed for each homestead used and occupied exclusively for residential purposes by the owner thereof, regardless of the number of qualified owners residing therein.

(b) Attachment of exemption. -- This exemption shall attach to the homestead occupied by the qualified owner on the July first assessment date and shall be applicable to taxes for the following tax year. An exemption shall not be transferred to another homestead until the following July first. If the homestead of an owner qualified under this article is transferred by deed, will or otherwise, the twenty thousand dollar exemption shall be removed from the property on the next July first assessment date unless the new owner qualifies for the exemption.

(c) Construction. -- The residency requirement specified in subsection (a) of this section is enacted pursuant to the Legislature's authority to prescribe by general law requirements, limitations and conditions for the homestead exemption, as set forth in section one-b, article ~~ten~~ X of the constitution of this state. Should the supreme court of appeals or a federal court of competent jurisdiction determine that this residency requirement violates federal law in a decision that becomes final, this section shall then be construed and applied, beginning with the July first assessment day immediately following the date the decision became final, as if the residency requirement had not been enacted, thereby preserving the availability of the homestead exemption and the fiscal integrity of local government levying bodies.

§11-6B-4. Claim for exemption; renewals; waiver of exemption.

(a) General. -- No exemption shall be allowed under this article unless a claim of exemption is filed with the assessor of the county in which the homestead is located, on or before the first day of October following the July first assessment day. In the case of sickness, absence or other disability of the claimant, the claim may be filed by the claimant or his or her duly authorized agent.

(b) Claims for disability exemption. -- Each claim for exemption based on the owner being permanently and totally disabled or on the owner being a person who is under sixty-five years of age, a veteran as that term is defined in section seven, article one, chapter nine-a of this code, disabled pursuant to the provisions of Title 38, United States Code and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes shall include one of the following forms of documentation in support of ~~said~~ the claim: (1) A written certification by a doctor of medicine or doctor of osteopathy licensed to practice their particular profession in this state that the claimant is permanently and totally disabled; (2) a written certification by the social security administration that the claimant is currently receiving benefits for permanent and total disability; (3) a copy of the letter from the social security administration originally awarding benefits to the claimant for permanent and total disability and a copy of a current check for ~~such~~ the benefits, marked void; (4) a current social security health insurance (medicare) card in the name of the claimant and a copy of a current check to the claimant, marked void, for benefits from the social security administration for permanent and total disability; (5) a written certification signed by the veterans administration certifying that a person is totally and permanently disabled or is otherwise disabled; (6) any lawfully recognized workers' compensation documentation certifying that a person is totally and permanently disabled; (7) any lawfully recognized pneumoconiosis documentation certifying that a person is totally and permanently disabled; or (8) any other lawfully recognized documentation certifying that a person is totally and permanently disabled.

(1) Senior citizens. -- If the claimant is age sixty-five or older, then after the claimant has filed for the exemption once with his or her assessor, there ~~shall~~ may be no need for that claimant to refile unless the claimant moves to a new homestead.

(2) Disabled. -- If the claimant is permanently and totally disabled or a person who is under sixty-five years of age, a veteran as that term is defined in section seven, article one, chapter nine-a of this code, disabled pursuant to the provisions of Title 38, United States Code and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes, then after the claimant has filed for the exemption once with his or her assessor, and signed a statement certifying that he or she will notify the assessor if he or she is no longer eligible for an exemption on the basis of being permanently and totally disabled or a person who is under sixty-five years of age, a veteran as that term is defined in section seven, article one, chapter nine-a of this code, disabled pursuant to the provisions of Title 38, United States Code and who owns a homestead that is used and occupied by the owner thereof exclusively for residential purposes and that the claimant will notify the assessor within thirty days of the discontinuance of the receipt of benefits for permanent and total disability or other disability benefits if a claimant under the age of sixty-five years, if the claimant originally claimed receipt of said benefits to document his or her claim for exemption, there ~~shall~~ may be no need for that claimant to refile, unless the claimant moves to a new homestead.

(3) Waiver of exemption. -- Any person not filing his or her claim for exemption on or before the first day of October shall be determined to have waived his or her right to exemption for the next tax year.

NOTE: The purpose of this bill is to grant homestead exemption benefits on disabled veterans who are under sixty-five years of age.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.