What many are not aware of is a PERSONAL (NOT real estate) Property Tax Rebate created by the same law. The rebate/credit was a compromise to provide relief without amending the state constitution (a resolution that failed in the previous election). The credit also keeps property tax local - in your county's hands to fund schools and local services.
The rebate takes effect in 2024 as a credit on that year's income tax return (filed in 2025). In this newsletter, I'll tell readers what they need to know to maximize their savings.
[Note - There is also a new non-vehicle business personal property tax credit which I will discuss in a separate newsletter]
Yep, that's what it's called, and it's a broad rebate of tax paid on a variety of vehicles (including non-motorized trailers) by a wide swath of individuals and organizations. Here are answers to some common questions:
How Much is the Credit? The credit (rebate for those not filing a tax return) equals 100% of the vehicle personal property tax paid during the tax year. That's right, 100%!
To qualify, the tax must be paid by its due date. Late-paid and delinquent taxes do not qualify.
Which Vehicles Qualify? As mentioned earlier, the credit encompasses a variety of personal property residents pay tax on, including ATVs and trailers.
Here's a list of vehicle classes that qualify.
As you can see, this is an extensive selection of qualifying assets (sorry - your RV didn't make the cut). What is especially surprising is that individuals and businesses qualify for the credit!
Who Qualifies for The Credit? Individual taxpayers qualify, So do Partnerships, S-Corporations, LLCs (sole proprietorships), and C-Corporations.
Partnerships and S-Corporation will likely pass the credit on to partners and shareholders who will claim the credit on their personal returns.
Even vehicle leasing companies qualify. But, they must pass the savings on to the lessee of the vehicle as a discount or refund. This may prove an administrative challenge, so stay on top of them to ensure you receive it.
Note: If you have a flow-through business (Partnership or S Corp), make sure your preparer knows about this credit.
How Do I Apply? There will be a line added to your 2024 WV Income Tax Return(s). There will also be a form created that attaches. Additionally, be prepared to send us receipts, as we'll likely have to scan and attach them to your return.
Those who do not have to file returns (primarily due to their income being non-taxable) will also be able to receive the credit through a separate process - likely, mailing a separate form and receipts directly to the state tax department.
All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.
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Jam packed with info. I feel ready to finalize the year and tackle my taxes!- Cassie, Biloxi, MS, Real Estate Agent Tax-Cut Library, Agent Edition Course
The course did meet my needs and clarified several fine points that the IRS instructions did not make clear to my brain.- Joe, VT, 1120-H Basics Course
The course was excruciatingly detailed, which I appreciate. I definitely recommend this course to anyone who even thinks they may need it.- Greg, Brookfield, IL, 1099-MISC Basics (Training Edition) Course
The course was excruciatingly detailed, which I appreciate. I definitely recommend this course to anyone who even thinks they may need it.- Greg, Brookfield, IL, 1099-MISC Basics Course