ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2949
(By Delegates White and T. Campbell)
[Passed March 10, 2011; in effect ninety days from passage.]
AN ACT to repeal §11-6I-1, §11-6I-2, §11-6I-3, §11-6I-4, §11-6I-5,
§11-6I-6, §11-6I-7, §11-6I-8, §11-6I-9, §11-6I-10 and
§11-6I-11 of the Code of West Virginia, 1931, as amended; and
to amend and reenact §11-21-21, §11-21-23, and §11-21-24 of
said code, all relating to providing property tax relief to
taxpayers generally; providing definitions of "low income" for
purposes of property tax relief programs; allowing only "low
income" taxpayers to receive the tax credit benefits of
property tax relief programs; allowing those eligible for the
homestead exemption to take both the senior citizens' tax
credit for property tax paid on the first $20,000 of taxable
assessed value of a homestead and the refundable tax credit
for real property taxes paid in excess of four percent of
gross household income; repealing the Senior Citizen Property
Tax Payment Deferment Act; and eliminating the alternative low
income property tax increment refundable credit program.
Be it enacted by the Legislature of West Virginia:
That §11-6I-1, §11-6I-2, §11-6I-3, §11-6I-4, §11-6I-5,
§11-6I-6, §11-6I-7, §11-6I-8, §11-6I-9, §11-6I-10, and §11-6I-11 of
the code of West Virginia, 1931, as amended, be repealed; and that
§11-21-21, §11-21-23, and §11-21-24 of said code be amended and
reenacted, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-21. Senior citizens' tax credit for property tax paid on
first $20,000 of taxable assessed value of a
homestead in this state.
(a)
Allowance of credit. --
(1) A low-income person who is allowed a $20,000 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 $10,000 of taxable
assessed value of the homestead for property tax years that begin
on or after January 1, 2003, except as provided in subdivision (2)
of this subsection.
(2) For tax years beginning on or after January 1, 2007, a
low-income person who is allowed a $20,000 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 $20,000 of taxable assessed value of
the homestead for property tax years that begin on or after January
1, 2007:
Provided, That for tax years beginning on and after
January 1, 2009, any person who is required to pay the federal
alternative minimum income tax in the current tax year is
disqualified from receiving any tax credit provided under this
section.
(3) Due to the administrative cost of processing, the
refundable credit authorized by this section may not be refunded if
less than $10.
(4) The credit for each property tax year shall be claimed by
filing a claim for refund within three years after the due date for
the personal income tax return upon which the credit is first
available.
(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) (A) For tax years beginning before January 1, 2007, "taxes
paid" means the aggregate of regular levies, excess levies and bond
levies extended against not more than $10,000 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 January 1, 2003, except as provided in paragraph (B) of this
subdivision.
(B) For tax years beginning on or after January 1, 2007,
"taxes paid" means the aggregate of regular levies, excess levies
and bond levies extended against not more than $20,000 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 January 1, 2007.
(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 section.
(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) For tax years beginning on or after January 1, 2012,
taxpayers must calculate the credit authorized in this section
prior to calculating the credit authorized in section twenty-three
of this article.
§11-21-23. Refundable credit for real property taxes paid in
excess of four percent of gross household income.
(a) For the tax years beginning on or after January 1, 2008,
any homeowner living in his or her homestead shall be allowed a
refundable credit against the taxes imposed by this article equal
to the amount of real property taxes paid in excess of four percent
of gross household income:
Provided, That for the tax years
beginning on or after January 1, 2012, any low income homeowner
living in his or her homestead in this state shall be allowed a
refundable credit against the taxes imposed by this article equal
to the amount by which the difference between West Virginia real
property taxes paid for the tax year, minus the amount of credit
authorized in section twenty-one of this article, exceeds four
percent of the taxpayer's gross household income for the tax year,
as determined for purposes of this article. If the refundable
credit provided in this section exceeds the amount of taxes imposed
by this article, the state Tax Department shall refund that amount
to the homeowner.
(b) Due to the administrative cost of processing, the
refundable credit authorized by this section may not be refunded if
less than $10.
(c) The credit for each property tax year shall be claimed by
filing a claim for refund within twelve months after the real
property taxes are paid on the homestead.
(d) For the purposes of this section:
(1) "Gross household income" is defined as federal adjusted gross income plus the sum of the following:
(A) Modifications in subsection (b), section twelve of this
article increasing federal adjusted gross income;
(B) Federal tax-exempt interest reported on federal tax
return;
(C) Workers' compensation and loss of earnings insurance; and
(D) Nontaxable Social Security benefits; and
(2) For the tax years beginning before January 1, 2008, "real
property taxes paid" means the aggregate of regular levies, excess
levies and bond levies extended against the homestead that are paid
during the calendar year and determined after any application of
any discount for early payment of taxes but before application of
any penalty or interest for late payment of property taxes for
property tax years that begin on or after January 1, 2008.
(e) A homeowner is eligible to benefit from this section or
section twenty-one of this article, whichever section provides the
most benefit as determined by the homeowner. No homeowner may
receive benefits under both this section and section twenty-one of
this article during the same taxable year:
Provided, That for tax
years beginning on or after January 1, 2012, a homeowner may take
the credit provided in this section in addition to the credit
provided in section twenty-one of this article, to be calculated as
provided in subsection (a) of this section. For tax years
beginning on and after January 1, 2009, any person who is required
to pay the federal alternative minimum income tax in the current
tax year is disqualified from receiving any tax credit provided under this section. Nothing in this section denies those entitled
to the homestead exemption provided in section three, article six-b
of this chapter.
(f) No homeowner may receive a refundable tax credit imposed
by this article in excess of $1,000. This amount shall be reviewed
annually by the Legislature to determine if an adjustment is
necessary.
(g) For tax years commencing on or after January 1, 2012, no
credit may be taken under this section for any homestead which is
owned, in whole or in part, by any person who is not a low income
person.
(
h) Terms defined. -- For purposes of this section:
(1) The definitions set forth in section twenty-four of this
article apply for purposes of this section.
(2) "Low income" means federal adjusted gross income for the
tax year that is three hundred 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.
(3) A "low income person" means a person whose federal
adjusted gross income for the tax year meets the definition of "low
income" as defined in this subsection.
§11-21-24. Senior citizen property tax relief credit for tax years
beginning before 2012.
(a)
Definitions. -- As used in this section, the following
terms shall have the meaning ascribed to them in this subsection,
unless the context in which the term is used clearly requires a
different meaning or a specific different definition is provided:
(1) "Assessed value" means the value of property as determined
under article three of this chapter.
(2) "Real property taxes paid" means, for the tax years
beginning on or after January 1, 2009, the aggregate of regular
levies, excess levies and bond levies extended against the
homestead that are paid during the calendar year and determined
after any application of any discount for early payment of taxes
but before application of any penalty or interest for late payment
of property taxes.
(3) "Senior citizen property tax relief tax credit" means the
tax credit authorized under this section.
(4) "Gross household income" means gross household income as
defined in section twenty-three of this article.
(5) "Homestead" means a homestead qualified for the homestead
property tax exemption authorized in article six-b of this chapter,
but limited to a single-family residential house, including a
mobile or manufactured or modular home, and the land, not exceeding
one acre, surrounding such structure that is owned by the owner of
the single-family residential house, including a mobile or
manufactured or modular home; or a mobile or manufactured or
modular home regardless of whether the land upon which such mobile
or manufactured or modular home is situated is owned by another.
(6) "Owner" or "homeowner" 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
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 considered
the owner. Personal property mortgaged or pledged shall, for the
purpose of taxation, be considered the property of the party in
possession.
(7) "Sixty-five years of age or older" includes a person who
attains the age of sixty-five on or before June 30 following the
July 1 assessment day.
(8) "Tax increment" means the increase of ad valorem taxes
assessed on the homestead, determined as the difference between the
ad valorem taxes assessed on the homestead for the current tax year
and the ad valorem taxes assessed on the homestead for the tax year
immediately preceding the tax year for which the taxpayer's
application for tax credit specified in this section is approved by
the assessor, or otherwise finally approved in accordance with the
provisions of this article.
(9) "Tax year" means the property tax calendar year following
the July 1 assessment day.
(10) "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 subsequent to making application for tax credit, the property is used only as
an abode, dwelling or habitat to the exclusion of any commercial
use.
(b)
Refundable credit. -- Subject to the requirements and
limitations of this section, for the tax years beginning on or
after January 1, 2009, any homeowner having a gross household
income equal to or less than $25,000 for the tax year, living in
his or her homestead shall be allowed a refundable credit against
the taxes imposed by this article equal to the amount of real
property taxes paid that are attributable to the tax increment of
ad valorem taxes assessed under the authority of article three of
this chapter on the homestead:
Provided, That the gross household
income shall be adjusted annually in accordance with the consumer
price index. The credit shall be applied against the personal
income tax in the personal income tax year of the taxpayer when the
property tax increment was actually paid.
(1) Due to the administrative cost of processing, the
refundable credit authorized by this section may not be refunded if
less than $10.
(2) The credit for each property tax year shall be claimed by
filing a claim for refund within twelve months after the real
property taxes are paid on the homestead.
(3) Notwithstanding the provisions of section twenty-one or
section twenty-three of this article, for property tax years that
begin on or after January 1, 2009, a homeowner is eligible to
benefit from this section, section twenty-one or twenty-three of this article, whichever section provides the most benefit as
determined by the homeowner. No homeowner may receive benefits
under this section, section twenty-one or twenty-three of this
article during the same taxable year. Nothing in this section shall
be interpreted to deny any lawfully entitled taxpayer of the
homestead exemption provided in section three, article six-b of
this chapter.
(4) No tax credit shall be allowed under this section for tax
years beginning on or after January 1, 2012:
Provided, That the
definitions set forth in this section shall continue to apply for
purposes of section twenty-three of this article.
(c) Qualification for credit. --
(1) The following homesteads shall qualify for the tax credit
provided in this section:
(A) Any homestead owned by an owner sixty-five years of age or
older and used and occupied exclusively for residential purposes by
such owner; and
(B) Any homestead that:
(i) Is owned by an owner sixty-five years of age or older who,
as a result of illness, accident or infirmity, is residing with a
family member or is a resident of a nursing home, personal care
home, rehabilitation center or similar facility;
(ii) Was most recently used and occupied exclusively for
residential purposes by the owner or the owner's spouse; and
(iii) Has been retained by the owner for noncommercial
purposes.
(2) (A) For tax years commencing on or after January 1, 2009,
the owner of a homestead meeting the qualifications set forth in
subdivision (1) of this subsection may apply for a tax credit in
the amount of the tax increment of ad valorem taxes assessed under
the authority of article three of this chapter on the homestead,
subject to the limitations set forth in this section:
Provided,
That the tax credit may be authorized only when the tax increment
is the greater of $300 or ten percent or more.
(B) In lieu of the tax credit authorized under this section,
a taxpayer entitled to such credit may elect to instead apply the
deferment of the tax increment authorized pursuant to article six-h
of this chapter. Any taxpayer making such election shall be fully
subject to the terms and limitations set forth in article six-h of
this chapter.
(d)
Application for tax credit; renewals; waiver of tax
credit. --
(1)
General. -- No tax credit may be allowed under this
section unless an application for tax credit is filed with the
assessor of the county in which the homestead is located, on or
before November 1 following mailing of the tax ticket in which the
tax increment that is the subject of the application is contained,
such tax ticket being mailed pursuant to section eight, article
one, chapter eleven-a of this code. In the case of sickness,
absence or other disability of the owner, the application may be
filed by the owner or his or her duly authorized agent.
(2)
Renewals. -- After the owner has filed an application for tax credit with his or her assessor, there shall be no need for
that owner to refile an application for the tax credit. However,
the taxpayer shall in all cases be required to file a personal
income tax return in order to claim the credit in any tax year.
(e)
Determination; notice of denial of application for tax
credit. --
(1) The assessor shall, as soon as practicable after an
application for tax credit is filed, review that application and
either approve or deny it. If the application is denied, the
assessor shall promptly, but not later than January 1, serve the
owner with written notice explaining why the application was denied
and furnish a form for filing with the county commission, should
the owner desire to take an appeal. The notice required or
authorized by this section shall be served on the owner or his or
her authorized representative either by personal service or by
certified mail. The assessor shall approve or disapprove an
application for tax credit within thirty days of receipt. Any
application not approved or denied within thirty days is deemed
approved.
(2) In the event that the assessor has information sufficient
to form a reasonable belief that an owner, after having been
originally granted a tax credit, is no longer eligible for the tax
credit, he or she shall, within thirty days after forming this
reasonable belief, revoke the tax credit and serve the owner with
written notice explaining the reasons for the revocation and
furnish a form for filing with the county commission should the owner desire to take an appeal.
(f)
Appeals procedure. --
(1)
Notice of appeal; thirty days. -- Any owner aggrieved by
the denial of his or her claim for application for tax credit or
the revocation of a previously approved tax credit may appeal to
the county commission of the county within which the property is
situated. All such appeals shall be filed within thirty days after
the owner's receipt of written notice of the denial of an
application or the revocation of a previously approved tax credit,
as applicable, pursuant to subsection (e) of this section.
(2)
Review; determination; appeal. -- The county commission
shall complete its review and issue its determination as soon as
practicable after receipt of the notice of appeal, but in no event
later than February 28 following the tax year for which the tax
credit was sought. In conducting its review, the county commission
may hold a hearing on the application. The assessor or the owner
may apply to the circuit court of the county for review of the
determination of the county commission in the same manner as is
provided for appeals from the county commission in section
twenty-five, article three of this chapter.
(g)
Termination of tax credit. --
(1) Any tax credit approved in accordance with the provisions
of this section shall terminate immediately when any of the
following events occur:
(A) The death of the owner of the property for which the tax
credit was authorized;
(B) The sale of the property for which the tax credit was
approved; or
(C) A determination by the assessor that the property for
which the tax credit was approved no longer qualifies for the tax
credit in accordance with the provisions of this section.
(h)
Forms, instructions and regulations. -- The Tax
Commissioner shall prescribe and supply all necessary instructions
and forms for administration of this section. Additionally, the Tax
Commissioner may propose rules for legislative approval in
accordance with the provisions of article three, chapter
twenty-nine-a of this code as the Tax Commissioner considers
necessary for the implementation of this section.
(i)
Criminal penalties; restitution. --
(1)
False or fraudulent claim for tax credit. -- Any owner who
willfully files a fraudulent application for tax credit and any
person who knowingly assisted in the preparation or filing of such
fraudulent application for tax credit or who knowingly supplied
information upon which the fraudulent application for tax credit
was prepared or allowed is guilty of a misdemeanor and, upon
conviction thereof, shall be fined not less than $250 nor more than
$500, or imprisoned in jail for not more than one year, or both
fined and imprisoned.
(2) In addition to the criminal penalties provided above, upon
conviction of any of the above offenses, the court shall order that
the defendant make restitution unto this state for all taxes not
paid due to an improper tax credit, or continuation of a tax credit, for the owner and interest thereon at the legal rate until
paid.