Senate Bill No. 41
(By Senators Sypolt and Deem)
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[Introduced February 11, 2009; referred to the Committee on
Finance.]
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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 $10,000 of taxable assessed value of a
homestead in this state; tax credit for property tax
paid on first $20,000 of value for property tax
years after December 31, 2006.
(a)
Allowance of credit. --
(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 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 $20,000 of taxable assessed value of
the homestead for property tax years that begin on or after January
1, 2007.
(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) "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:
Provided, That
beginning on or after July 1, 2009, to qualify as "low income"
shall be determined by 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. --
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. --
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.
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 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
the present law, and underscoring indicates new language that would
be added.