H. B. 2068
(By Delegate Kallai)
[Introduced January 18, 1995; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-five-a,
relating to taxation; providing for homestead exemption for
all homeowners and renters not otherwise entitled to the
exemption; declaration of purpose; definitions; forms and
instructions; proof of claim; landlord's cooperation
required; relief limited to one claimant per homestead per
year; filing date; claim as disbursement from state funds;
providing that claim is personal; denial of claim; violation
of article; assessment; interest and penalties; providing criminal penalties; and providing for hearings and appeals.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article twenty-five-a,
to read as follows:
ARTICLE 25A. TAX RELIEF FOR PERSONS UNDER SIXTY-FIVE YEARS OF
AGE AND NOT TOTALLY AND PERMANENTLY DISABLED.
§11-25A-1. Declaration of purpose; rule of construction.
This article is enacted pursuant to the provisions of
section one-b, article ten of the Constitution of West Virginia
to provide general relief for citizens who are under sixty-five
years of age and not totally and permanently disabled to aid them
in providing or maintaining a homestead, by authorizing a claim
for relief to be filed with the state tax commissioner and
payment thereof from state funds, the amount of relief to be
measured in part by the real property taxes or that portion of
rent attributable to real property taxes paid by any such
citizen, and the providing of such general relief is hereby
declared to be a public purpose: Provided, That this exemption
shall only apply to such property in any county in which the property was appraised at its value as of the first day of
January, one thousand nine hundred eighty, or thereafter, and
this exemption shall be phased in over a period not to exceed
five years from the date the property was so appraised. This
article shall, therefore, be liberally construed.
§11-25A-2. Definitions.
When used in this article, unless the context clearly
requires a different meaning:
(1) "Claimant" means a person under sixty-five years of age
who was domiciled in this state during any portion of the
calendar year preceding the year in which the claimant is
eligible to file a claim for relief under this article. If two
or more individuals, who otherwise qualify as claimants under
this article, occupy a single homestead, such individuals may
determine between themselves as to which individual shall be the
claimant; however, if such individuals are unable to agree, the
matters shall be referred to the state tax commissioner for
determination and his decision shall be final.
(2) "Claimant's spouse" means the spouse of the claimant if such spouse resides in the homestead during any portion of the
calendar year preceding the year in which the claimant is
eligible to file a claim for relief under this article.
(3) "Homestead" means a single family residential house
and the land surrounding such structure; or a part of a
multi-dwelling building, multi-purpose building or apartment
house; or a mobile home which is used as a permanent residence
and the land upon which such mobile home is situate; and it is
immaterial for the purposes of this article whether the foregoing
are being purchased, are owned or are rented.
(4) "Household" means a claimant, a claimant and the
claimant's spouse or a claimant and any other person or persons
who resides or reside in a homestead.
(5) "Property taxes" means the amount of the real property
taxes, exclusive of any interest or charges for delinquency
thereof, paid by a claimant on his homestead beginning with the
calendar year one thousand nine hundred ninety-six, and for any
particular calendar year thereafter: Provided, That if a homestead is owned by a claimant and a person or persons (other
than the claimant's spouse) as joint tenants or as tenants in
common, and such person or persons owning such interest in such
homestead do not reside in such homestead, then for the purposes
of this article, the property taxes paid by the claimant shall be
prorated according to such claimant's percentage of ownership of
such homestead: Provided, however, That if the claimant's
homestead is a single unit within any multi-dwelling building,
multi-purpose building or apartment house, and such claimant owns
the entirety of any such structure, the property taxes paid by
the claimant for the purposes of this article shall be prorated
so as to reflect the percentage of value which the claimant's
homestead is to the value of the entire structure which is
assessed in a single assessment based upon the entire property.
(6) "Rent constituting property taxes" means twelve percent
of the gross rent paid by a claimant for the right of occupancy
of his homestead beginning with the calendar year one thousand
nine hundred ninety-six, and for any particular calendar year thereafter.
§11-25A-3. Forms and instructions; maximum participation.
The state tax commissioner shall prescribe and make
available claim forms with instructions for claimants, and every
assessor and sheriff shall comply with all reasonable requests
and rules of the state tax commissioner in order to encourage
maximum participation of claimants eligible for relief under the
provisions of this article.
§11-25A-4. Proof of claim; landlord's cooperation required;
relief limited to one claimant per homestead per year.
Every claimant who is a homestead owner shall supply to the
state tax commissioner, in support of his claim, reasonable proof
of property taxes paid, information as to the size and nature of
the property claimed as the homestead and a statement that the
real property taxes thereon have been paid by him and that there
are no delinquent real property taxes on the homestead.
Every claimant who is a homestead renter shall supply to the
state tax commissioner, in support of his claim, reasonable
proof, as required by the state tax commissioner, of rent paid and the name and address of the owner or managing agent of the
property rented. The claimant's landlord shall at the claimant's
request sign a statement setting forth the gross rent paid by the
claimant for the particular calendar year. Any landlord who
willfully furnishes a false or fraudulent statement, or who
willfully fails to furnish a statement in the manner, at the
time, and showing the information required by the claimant in
order to file a timely claim, shall for each such violation be
guilty of a misdemeanor, and, upon conviction thereof, shall be
fined an amount not exceeding fifty dollars.
Only one claimant for a homestead for a calendar year shall
be entitled to relief under this article.
§11-25A-5. Filing date.
No claim for relief shall be paid or allowed unless such
claim for relief is actually filed with and in the possession of
the state tax commissioner between and including the respective
dates of July one and September thirty following the calendar
year with respect to which the claim for relief under the provisions of this article is based. Persons not filing claims
for relief as provided by this article within the appropriate
ninety-day filing period are deemed to have waived all claims for
relief for that particular calendar year. A claimant filing a
timely claim for relief may submit an amended claim for relief
within two years following the close of the appropriate filing
period.
In case of sickness, absence or other disability of the
claimant or if, in the state tax commissioner's judgment good
cause exists, the state tax commissioner may extend the time for
filing a claim for relief for a period not to exceed six months.
§11-25A-6. Claim as disbursement from state funds; claim is
personal; offset.
Upon the state tax commissioner's determination that a
claimant is entitled to relief under the provisions of this
article, and after audit and certification of his claim for
relief, such relief shall be paid upon a state warrant drawn upon
the state treasury from balances retained for general purposes. The right to file a claim for relief under this article is
personal to the claimant and shall not survive his death except
that the spouse of such decedent shall be entitled to file such
claim if decedent had not filed the same. In the event the
claimant is incompetent or insane, his claim may be filed by his
duly appointed and qualified legal guardian or committee. If a
claimant dies after having filed a timely claim for relief under
the provisions of this article, and the state tax commissioner
determines that such relief or any portion thereof is proper,
then such relief or portion thereof shall be paid to such
claimant's executor or administrator: Provided, That if an
executor or administrator has not been appointed and qualified
within a reasonable time after the claimant's death, the state
tax commissioner may in his discretion pay such relief to any
other person residing in the claimant's homestead if there be
such person and if there be no such other person residing in such
homestead, the amount of such relief shall escheat to the state.
The amount of any claim for relief otherwise payable under this article may be applied by the state tax commissioner against
any liability outstanding on the books of the commissioner
against the claimant.
§11-25A-7. Denial of claim; violation of article; assessment;
interest
and
penaltie
s; crime.
If it is determined that a claim for relief was filed by a
claimant who was the recipient of public funds for the payment of
his real property taxes or rent during the period for which the
claim for relief was filed, or that such claimant received title
to his homestead primarily for the purpose of receiving relief
under this article, or that a claim for relief was filed with
fraudulent intent, such claim for relief shall be disallowed in
full, and, if any such claim for relief has been paid, the amount
paid may be recovered by assessment in the same manner as taxes
are assessed under article ten of this chapter and the assessment
shall bear interest from the date of payment of the claim for relief, until refunded to the state tax commissioner, at the rate
of one percent per month. Any claimant willfully and knowingly
filing a fraudulent claim for relief, and any person who assisted
in the preparation or filing of such fraudulent claim for relief
or supplied information upon which such fraudulent claim for
relief was prepared, with knowledge of such fraudulent intent of
the claimant, shall be guilty of a misdemeanor, and, upon
conviction thereof, shall be fined not less than fifty nor more
than one hundred dollars, or imprisoned in the county jail not
more than six months, or both fined and imprisoned. If it is
determined that a claim for relief is excessive and was through
negligence incorrectly prepared, ten percent of the corrected
claim for relief shall be disallowed, and if the claim for relief
has been paid, the excessive portion of any amount paid and the
ten percent disallowed shall be similarly recovered by assessment
in the same manner as taxes are assessed under article ten of
this chapter and the assessment shall bear interest from the date
of payment of the claim for relief until refunded to the state tax commissioner at the rate of one percent per month.
§11-25A-8. Hearings and appeals.
Any claimant aggrieved by the denial in whole or in part of
his claim for relief, except when the denial is based upon the
late filing of a claim for relief, may demand a hearing within
thirty days after such denial by filing with the state tax
commissioner a verified petition for hearing, which petition
shall set forth with definiteness and particularity the reasons
for objecting to such denial. In every case where a petition is
filed, the state tax commissioner shall assign a time and place
for a hearing upon the same and shall proceed in accordance with
the provisions of article ten of this chapter and all of the
applicable provisions of said article ten shall be applicable
with like effect as if the petition were a petition for
reassessment as provided in said article ten. In connection with
holding any such hearing, the state tax commissioner shall have
all of the relevant powers and authority set forth in said
article ten. An appeal from a final decision of the state tax commissioner made after any such hearing may be taken by the
claimant in accordance with the provisions of said article ten of
this chapter, and such appeal shall be processed and determined
with like effect as if said claimant were a "taxpayer" as that
term is used in said article ten.
NOTE: The purpose of this bill is to extend the homestead
exemption from property taxes to all persons in this state under
the age of sixty-five years and who are not totally and
permanently disabled. The exemption is to be phased in over a
period of five years.
Article 25A is new; therefore, strike-throughs and
underscoring have been omitted.