FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on
A BILL to amend and
reenact §11-21-21 of the Code of West Virginia, 1931, as amended, relating to
changing the qualifier for low income to three hundred percent or less of the
federal poverty guideline from one hundred fifty percent or less of the federal
poverty guideline for a senior citizens’ homestead tax credit.
Be it enacted by the
Legislature of West Virginia:
That §11-21-21 of the
Code of West Virginia, 1931, 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 $20,000 of taxable assessed
value of a homestead in this state.
(a) Allowance of credit.
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(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 is 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) (A) "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.
(B) For tax years beginning
after December 31, 2017, "low
income" means federal
adjusted gross income for the taxable 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.
(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.
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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.
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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.
NOTE: The purpose of this bill is
to change the qualifier for low income to three hundred percent or less of the
federal poverty guideline from one hundred and fifty percent or less of the
federal poverty guideline for a senior citizens’ homestead tax credit.
Strike-throughs indicate language
that would be stricken from a heading or the present law, and underscoring
indicates new language that would be added.