H. B. 2591
(By Delegate McGraw)
[Introduced January 14, 1998
; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact sections one, two, three, four and
ten, article six-b, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to making the twenty thousand dollar homestead
exemption applicable to every property owner regardless of
age or disability.
Be it enacted by the Legislature of West Virginia:
That sections one, two, three, four and ten, article six-b,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 6B. HOMESTEAD PROPERTY TAX EXEMPTION.
§11-6B-1. Purpose.
This article is enacted to implement the amendment to
article X, section one-b of the Constitution increasing the ad
valorem property tax homestead exemption, which was ratified by
the people at the general election held on the fourth day of
November, one thousand nine hundred eighty. Until the first day
of July, one thousand nine hundred ninety-seven, the provisions
of this article shall apply to every homestead owned and occupied
by a person who is sixty-five years of age or older or who is
permanently and totally disabled. After the first day of July,
one thousand nine hundred ninety-seven, the provisions of this
article shall apply to every homestead and every owner regardless
of age or disability.
§11-6B-2. Definitions.
For purposes of this article, the term:
(1) "Assessed value" means the value of property as
determined under article three of this chapter.
(2) "Claimant" means a person who is age sixty-five or older
or who is certified as being permanently and totally disabled,
and who owns a homestead that is used and occupied by the owner
thereof exclusively for residential purposes.
(3) "Homestead" means a single family residential house,
including a mobile or manufactured or modular home, and the land surrounding such the structure; or a mobile or manufactured or
modular home regardless of whether the land upon which such
mobile or manufactured or modular home is situated is owned or
leased.
(4) "Owner" means the person who is possessed of the
homestead, whether in fee or for life. A person seized or
entitled in fee subject to a mortgage or deed of trust shall be
deemed the owner. A person who has an equitable estate of
freehold, or is a purchaser of a freehold estate who is in
possession before transfer of legal title shall also be deemed
the owner. Personal property mortgaged or pledged shall, for the
purpose of taxation, be deemed the property of the party in
possession.
(5) "Permanently and totally disabled" means a person who is
unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental condition which can
be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than twelve
months.
(6) "Sixty-five years of age or older" includes a person who
attains the age of sixty-five on or before the thirtieth day of
June following the July first assessment day.
(7) (5) "Used and occupied exclusively for residential
purposes" means that the property is used as an abode, dwelling
or habitat for more than six consecutive months of the calendar
year prior to the date of application by the owner thereof; and
that the property is used only as an abode, dwelling or habitat
to the exclusion of any commercial use: Provided, That failure
to satisfy this six-month period shall may not prevent allowance
of a homestead exemption to a former resident in accordance with
section three of this article.
(8) (6) "Tax year" means the calendar year following the
July first assessment day.
(9) (7) "Resident of this state" means an individual who is
domiciled in this state for more than six months of the calendar
year.
§11-6B-3. Twenty thousand dollar homestead exemption allowed.
(a) General. -- An exemption from ad valorem property taxes
shall be allowed for the first twenty thousand dollars of
assessed value of a homestead that is used and occupied by the
owner thereof exclusively for residential purposes, when such
owner is sixty-five years of age or older or is certified as
being permanently and totally disabled provided the owner has
been or will be a resident of the state of West Virginia for the two consecutive calendar years preceding the tax year to which
the homestead exemption relates: Provided, That an owner who
receives a similar exemption for a homestead in another state is
ineligible for the exemption provided by this section. The
owner's application for exemption shall be accompanied by a sworn
affidavit stating that such the owner is not receiving a similar
exemption in another state: Provided, however, That when a
resident of West Virginia establishes residency in another state
or country and subsequently returns and reestablishes residency
in West Virginia within a period of five years, such the resident
may be allowed a homestead exemption without satisfying the
requirement of two years consecutive residency if such the person
was a resident of this state for two calendar years out of the
ten calendar years immediately preceding the tax year for which
the homestead exemption is sought. Proof of residency includes,
but is not limited to, the owner's voter's registration card
issued in this state or a motor vehicle registration card issued
in this state. Additionally, when a person is a resident of this
state at the time such the person enters upon active duty in the
military service of this country and throughout such the service
maintains this state as his or her state of residence, and upon
retirement from the military service, or earlier separation due to a permanent and total physical or mental disability, such the
person returns to this state and purchases a homestead, such
person is deemed to satisfy the residency test required by this
section and shall be allowed a homestead exemption under this
section if such the person is otherwise eligible for a homestead
exemption under this article; and the tax commissioner may
specify, by regulation promulgated under chapter twenty-nine-a of
this code, what constitutes acceptable proof of these facts.
Only one exemption shall be allowed for each homestead used and
occupied exclusively for residential purposes by the owner
thereof, regardless of the number of qualified owners residing
therein.
(b) Attachment of exemption. -- This exemption shall attach
to the homestead occupied by the qualified owner on the July
first assessment date and shall be applicable to taxes for the
following tax year. An exemption shall may not be transferred to
another homestead until the following July first. If the
homestead of an owner qualified under this article is transferred
by deed, will or otherwise, the twenty thousand dollar exemption
shall be removed from the property on the next July first
assessment date unless the new owner qualifies for the exemption.
(c) Construction. -- The residency requirement specified in subsection (a) is enacted pursuant to the Legislature's authority
to prescribe by general law requirements, limitations and
conditions for the homestead exemption, as set forth in section
one-b, article ten of the constitution of this state. Should the
supreme court of appeals or a federal court of competent
jurisdiction determine that this residency requirement violates
federal law in a decision that becomes final, this section shall
then be construed and applied, beginning with the July first
assessment day immediately following the date the decision became
final, as if the residency requirement had not been enacted,
thereby preserving the availability of the homestead exemption
and the fiscal integrity of local government levying bodies.
§11-6B-4. Claim for exemption; renewals; waiver of exemption.
(a) General. -- No exemption shall be allowed under this
article unless a claim of exemption is filed with the assessor of
the county in which the homestead is located, on or before the
first day of October following the July first assessment day. In
the case of sickness, absence or other disability of the
claimant, the claim may be filed by the claimant or his or her
duly authorized agent.
(b) Claims for disability exemption. -- Each claim for
exemption based on the owner being permanently and totally disabled shall include one of the following forms of
documentation in support of said claim: (1) A written
certification by a doctor of medicine or doctor of osteopathy
licensed to practice their particular profession in this state
that the claimant is permanently and totally disabled; (2) a
written certification by the social security administration that
the claimant is currently receiving benefits for permanent and
total disability; (3) a copy of the letter from the social
security administration originally awarding benefits to the
claimant for permanent and total disability and a copy of a
current check for such benefits, marked void; (4) a current
social security health insurance (medicare) card in the name of
the claimant and a copy of a current check to the claimant,
marked void, for benefits from the social security administration
for permanent and total disability; (5) a written certification
signed by the veterans administration certifying that a person is
totally and permanently disabled; (6) any lawfully recognized
workers' compensation documentation certifying that a person is
totally and permanently disabled; (7) any lawfully recognized
pneumoconiosis documentation certifying that a person is totally
and permanently disabled; or (8) any other lawfully recognized
documentation certifying that a person is totally and permanently disabled.
(c) (b) Renewals. --
(1) Senior citizens. -- If the claimant is age sixty-five or
older, then after the claimant has filed for the exemption once
with his or her assessor, there shall be no need for that
claimant to refile unless the claimant moves to a new homestead.
(2) Disabled. -- If the claimant is permanently and totally
disabled, then after the claimant has filed for the exemption
once with his assessor, and signed a statement certifying that he
will notify the assessor if he is no longer eligible for an
exemption on the basis of being permanently and totally disabled
and that the claimant will notify the assessor within thirty days
of the discontinuance of the receipt of benefits for permanent
and total disability, if the claimant originally claimed receipt
of said benefits to document his claim for exemption, there shall
be no need for that claimant to refile, unless the claimant moves
to a new homestead.
(3) (c) Waiver of exemption. -- Any person not filing his or
her claim for exemption on or before the first day of October
shall be determined to have waived his or her right to exemption
for the next tax year.
§11-6B-10. Criminal penalties; restitution.
(a) False or fraudulent claim for exemption. -- Any claimant
who willfully files a fraudulent claim for exemption, and any
person who knowingly assisted in the preparation or filing of
such fraudulent claim for exemption or who knowingly supplied
information upon which the fraudulent claim was prepared or
allowed, shall be guilty of a misdemeanor and, upon conviction
thereof, shall be fined not less than fifty nor more than one
hundred and fifty dollars, or imprisoned in the county jail for
not more than six months, or both fined and imprisoned.
(b) Fraudulent assessments. -- (1) An assessor or employee
of a county who, with intent to defraud the state, assesses the
value of the eligible claimant's homestead for an amount which is
in excess of its true and actual value or is in excess of the
assessed value of similar property in his or her county, in order
to increase the cost of the homestead exemption to his or her
county and to thereby secure a larger reimbursement from the
state, shall be guilty of a misdemeanor and, upon conviction
thereof, shall be fined not less than one hundred dollars nor
more than five hundred dollars, or imprisoned in the county jail
for not more than one year, or both fined and imprisoned. Each
violation of this subsection shall constitute a separate offense.
(2) An assessor or employee of a county who, with intent to defraud a claimant, assesses the value of the eligible claimant's
homestead for an amount which is in excess of its true and actual
value or is in excess of the assessed value of similar property
in his or her county, shall be guilty of a misdemeanor and, upon
conviction thereof, shall be fined not less than one hundred
dollars nor more than five hundred dollars, or imprisoned in the
county jail for not more than one year, or both fined and
imprisoned. Each violation of this subsection shall constitute
a separate offense.
(c) Failure to notify assessor. -- A claimant or his or her
legal representative, who, prior to the next first day of July,
fails to notify the assessor of the county wherein property
subject to the homestead property tax exemption is located, that
title to that property or a portion thereof was transferred by
deed, grant, sale, gift, will or by the laws of this state
regulating descent and distribution, that the property is no
longer used and occupied for residential purposes exclusively by
the claimant, or that the claimant is no longer permanently and
totally disabled, shall be guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than one thousand
dollars or imprisoned for not more than one year or both.
(d) In addition to the criminal penalties provided above, upon conviction of any of the above offenses, the court shall
order that the defendant make restitution unto the state for all
taxes not paid due to an improper exemption for the claimant and
interest thereon at the legal rate until paid.
NOTE: The purpose of this bill is to make the twenty
thousand dollar homestead exemption applicable to every property
owner regardless of age or disability.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.