H. B. 2786
(By Delegates Craig, Morgan, Campbell,
Amores, Beach and Stalnaker)
January 30, 2003
; referred to the
Committee on Finance.]
A BILL to amend and reenact section twenty-one, article twenty-one,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to creation and
operation of a special revenue fund in the state treasury;
funding for administration of homestead personal income tax
credit set forth in West Virginia personal income tax act and
for general tax administration; specifying creation of
homestead tax credit administration fund; specifying that fund
shall be a revolving fund and any appropriations made to fund
shall not be deemed to expire at end of any fiscal year;
specifying that seventy five thousand dollars shall be
transferred annually in equal quarterly installments from
state lottery fund to homestead tax credit administration
fund; and authorizing the tax commissioner to use moneys
deposited in homestead tax credit administration fund to pay salaries and administrative costs to administer tax credit and
for general tax administration.
Be it enacted by the Legislature of West Virginia:
That section twenty-one, article twenty-one, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-21. Senior citizens' tax credit for property tax paid on
first ten thousand dollars of taxable assessed value
of a homestead in this state.
(a) Allowance of credit. -- A low-income person who is allowed
a twenty thousand dollar homestead exemption from the assessed
value of his or her homestead for ad valorem property tax purposes,
as provided in section three, article six-b of this chapter, shall
be allowed a refundable credit against the taxes imposed by this
article equal to the amount of ad valorem property taxes paid on up
to the first ten thousand dollars of taxable assessed value of the
homestead for property tax years that begin on or after the first
day of January, two thousand three.
(b) Terms defined. -- For purposes of this section:
(1) "Low income" means federal adjusted gross income for the
taxable year that is one hundred fifty percent or less of the
federal poverty guideline for the year in which property tax was paid, based upon the number of individuals in the family unit
residing in the homestead, as determined annually by the United
States secretary of health and human services.
(2) "Taxes paid" means the aggregate of regular levies, excess
levies and bond levies extended against not more than ten thousand
dollars of the taxable assessed value of a homestead that are paid
during the calendar year determined after application of any
discount for early payment of taxes but before application of any
penalty or interest for late payment of property taxes for a
property tax year that begins on or after the first day of January,
two thousand three.
(c) Legislative rule. -- The tax commissioner shall propose a
legislative rule for promulgation as provided in article three,
chapter twenty-nine-a of this code to explain and implement this
(d) Confidentiality. -- The tax commissioner shall utilize
property tax information in the statewide electronic data
processing system network to the extent necessary for the purpose
of administering this section, notwithstanding any provision of
this code to the contrary.
(e) Fund for administration, dedication of lottery proceeds.
-- There is hereby created a special revenue fund in the state
treasury which shall be designated and known as the "homestead tax
credit administration fund." The homestead tax credit administration fund is a revolving fund, and any appropriations
made to the fund may not be considered to have expired at the end
of any fiscal period. Notwithstanding the provisions of section
eighteen, article twenty two, chapter twenty-nine of this code to
the contrary, and notwithstanding any other provision of this code
to the contrary, seventy five thousand dollars shall be transferred
annually in equal quarterly installments from the state lottery
fund to the homestead tax credit administration fund. The tax
commissioner is authorized to use moneys deposited in the homestead
tax credit administration fund to pay salaries and administrative
costs to administer the tax credit set forth in this section and
for general tax administration.
NOTE: The purpose of this bill is to dedicate $75,000 of
lottery proceeds to a special revolving fund which is to be used by
the Tax Department to pay for salaries and administrative costs of
administering the homestead personal income tax credit.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would