Motor Vehicle Property Tax Adjustment Credit Updated

Gov. Jim Justice signed into law HB 125, an update to the West Virginia Motor Vehicle Property Tax Adjustment Credit.
The bill resolves some confusion among taxpayers who choose to pay their property tax bills as soon as they receive them.
Now all motor vehicle property taxes due in 2024 but paid in 2023 may be claimed as a credit on a taxpayer’s 2024 income tax return.
Previously, taxpayers had been told to pay only the first half of this year’s taxes during 2023 and to delay paying the second half until after Jan. 1, 2024, so they could claim the new tax credit approved this spring by the legislature.
With the latest revision to the law, taxpayers can pay the full ticket received in July or pay the first half in 2023 and the second half by April 1, 2024
Either way, every dollar of tax due in 2024 that is paid timely will be given back to the taxpayer as a rebate on their 2024 income tax return to be filed in 2025.
That will be true even if the second half was paid in 2023.
Taxpayers will need to file their income tax returns every year in order to receive the credit.
They will also need to filed their personal property assessments returns with county assessors before Sept. 1 for businesses and Oct. 1 for individuals.
Every vehicle owner, except motor vehicle dealers, is eligible for the credit.
That applies to individuals as well as partnerships and corporations.
It covers cars, trucks, motorcycles, buses, trailers, antique motor vehicles, farm trucks and all-terrain vehicles.
For individuals who lease their vehicles leasing companies are eligible for the credit and are required to pass the savings on to the consumer.
Vehicles that do not qualify for the tax credit are Class C trailers and semi-trailers, taxi cabs, mobile equipment and travel trailers.
Taxpayers that do not owe West Virginia income taxes and are not required to file a state income tax return will be able to file a claim for rebate in early 2025 of their motor vehicle property taxes paid without having to file a full return.
“We recognized a problem and fixed it as fast as we could. This bill brings clarity and relief to West Virginia taxpayers and allows everyone to pay their full vehicle property tax this year without being penalized,” Justice said.
“We should never punish someone for paying their taxes on time, and this bill ensures that we are treating all taxpayers fairly.”