West Virginians could get some money back thanks to a new personal property tax credit approved earlier this year. However, people need to pay their taxes correctly to get this personal property tax credit from West Virginia.
Personal Property Tax Credit From West Virginia: How To Claim It
Earlier this year, Governor Jim Justice signed this personal property tax credit into law that allows people to get refunds on taxes paid on personal property, including cars and motorcycles. This personal property tax credit from West Virginia is not available on real property like land.
As noted above, people need to pay taxes correctly to get this personal property tax credit. This tax credit law won’t go into effect until Jan. 1, 2024. So, taxes paid before Jan. 1, 2024, won’t qualify for the credit.
Even though people are now receiving their personal property tax bills, they won’t get the credit if they pay all their taxes this year. Thus, they need to pay their personal property taxes in two halves to qualify for the credit.
Along with paying taxes in two halves, people also need to ensure that they pay the taxes at the correct time. The first half of the personal property tax should be paid before October 1 this year, while the second half must be paid after January 1 but before April 1 of 2024.
It must be noted the credit will only be available on the second half of the personal property taxes accrued in 2023. This is because the tax credit law won’t go into effect until Jan. 1, 2024.
People who pay their taxes on time will be eligible to get a dollar-for-dollar credit in the second half. Those who pay their taxes after the due date won’t get the credit. It must be noted that the credit will show on the 2024 state tax return, which will be filed in early 2025.
Who Will Get The Credit?
Individuals, Partnerships, S-Corporations, LLCs, and C-Corporations that own a qualifying vehicle are eligible for the credit if they pay taxes correctly.
Leasing companies can also qualify for the credit, but they need to pass the savings on to the customers leasing the motor vehicle. Motor Vehicle Dealers, however, do not qualify for this credit.
Along with paying taxes timely, people also need to timely file personal property tax returns with their County Assessor to qualify for the personal property tax credit from West Virginia (September 1 for businesses and October 1 for individuals).
It must be noted that the credit is only available for the actual tax paid. In case of an early payment discount, the credit will be limited to the amount actually paid after the discount.
In addition to the personal property tax credit, Gov. Justice approved a new credit for disabled veterans earlier this year. This credit also goes into effect next year, so veterans must pay the second half of their real estate tax next year.
Visit this link for more information on the property tax credit from West Virginia.
This article originally appeared on ValueWalk
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