W. Va. Code R. § 110-21C-5

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-21C-5 - Method to demonstrate good standing with state, local, municipal and county taxing authorities

5.1. Demonstration of good standing during the application process. - When requesting certification for the credits that are granted pursuant to W. Va. Code §§ 11-21-8a and 11-24-23a, the taxpayer must include documentation demonstrating the taxpayer's good standing in the following manner.

5.1.a. The documentation of good standing shall be submitted with the Request for Certification to the State Historic Preservation Office and must address the time period between the initial application for the Qualified Rehabilitated Building Credit through the end of the tax period immediately prior to the date of the Request for Certification. Prior tax arrearages and delinquencies must have been resolved prior to the time the documentation of good standing is issued.

5.1.b. The Request for Certification will not be complete without the documentation of good standing.

5.2. Demonstration of good standing during the period the tax credit is claimed. - When claiming the credits that are granted pursuant to W. Va. Code §§ 11-21-8a and 11-24-23a, the taxpayer must include documentation demonstrating the taxpayer's good standing in the following manner.

5.2.a. Documentation of good standing shall be submitted with the Schedule RBIC and tax return to the State Tax Division. During the initial tax period during which the credit is claimed, the documentation of good standing must address the time period between the end of the tax period immediately preceding the Request for Certification through the end of the tax period ending immediately preceding the date of the request for credit. For subsequent tax periods in which the credit is claimed, the documentation of good standing must address the period immediately succeeding the most recent tax period addressed by the most recently-submitted documentation of good standing through the end of the tax period immediately preceding the request for good standing. Prior tax arrearages and delinquencies must have been resolved by the time the documentation of good standing is issued.

5.2.b. The request for credit will not be considered complete, and will not be granted, without this documentation of good standing. However, the return will be processed as if no claim for credit has been made.

5.3 The documentation of good standing described in Subsections 5.1 and 5.2. must be issued by the relevant taxing authority and the documentation of good standing may include a receipt, a letter of good standing, or other type of documentation that shows the date issued, the periods covered, the type of taxes, the taxpayer's identity and address, the name and title of the official from the taxing authority issuing the documentation of good standing, and other such relevant information as the issuing taxing authority deems necessary.

5.4. Taxes that must be included in the documentation of good standing include the following -

5.4.a. Every tax to which the taxpayer is subject that is imposed in Chapter 8, Articles 13, 13A, and 13C of the Code of West Virginia, as well as any other lawfully-imposed local or municipal tax,

5.4.b. Every tax administered by the State Tax Division to which the taxpayer is subject that is imposed in Chapter Eleven of the Code of West Virginia, as well as any other lawfully-imposed tax, including but not limited to the municipal sales and use tax set forth by W. Va. Code § 8-1-5a,

5.4.c. Property taxes to which the taxpayer is subject on the property containing the certified historic structure, except for the situation set forth by Subsection 4.4.b of these rules.

5.5. For purposes of this section, "good standing" means a taxpayer is not in arrears on the payment of and reporting on any tax administered by the State Tax Division; and is not delinquent on the payment of or reporting on any tax administered by a county, local or municipal authority, including the payment on and reporting of property taxes on the property containing the certified historic structure.

5.5.a. For purposes of this section, "in arrears on the payment of and reporting on any tax administered by the State Tax Division" mean the requirements for timely filing and paying taxes as set forth in W. Va. Code § 11-10-5f have not been met.

5.5.b. For purposes of this section, "delinquent on the payment on any tax administered by a local or municipal authority" means the taxpayer has not paid the relevant tax and filed the relevant return by the due date set forth in the municipality's code.

5.5.c. For purposes of this section, "delinquent on the payment of property taxes on the property containing the certified historic tax structure" means that the taxpayer has not paid the property tax or submitted the return that included the property that contains the certified historic structure.

5.6. Whether documentation demonstrating good standing can be issued in any particular instance depends upon each taxing authority's legal authority and internal policies. For example, one taxing authority may issue documentation of good standing if a taxpayer is currently in compliance with the terms of a payment plan, while another may not issue documentation of good standing under those circumstances, or even offer payment plans. Further, some tax authorities may only issue documentation of good standing for the current period if all prior periods are also in good standing. In those circumstances, the documentation of good standing will be accepted as covering all relevant periods.

5.7. Alternative method to demonstrate good standing. - In the event that a taxing authority lacks the ability to issue documentation of good standing, an invoice and cancelled check or electronic banking record that shows the tax was paid will be considered persuasive evidence of good standing. This alternative form of documentation must be accompanied by an affidavit from the taxpayer that attests what efforts were made by the taxpayer to obtain documentation of good standing from the taxing authority; that the corresponding return has been filed; and shows the date the affidavit was issued, the tax periods covered, the type(s) of taxes, the taxpayer's identity and address, the name and title of the taxpayer representative completing the affidavit, and any other relevant information the taxpayer deems necessary. The alternative method to demonstrate good standing will not be considered complete without the affidavit.

5.8. Information requests. - The State Tax Division and State Historic Preservation Office have the authority to contact county, municipal and local taxing authorities, upon receipt of a Request for Certification, a request for Certificate of Approval, or request for credit, to make inquiries regarding a taxpayer's status. The county, municipal and local taxing authority may respond within the limits of the legal authority establishing the county, municipal or local tax.

W. Va. Code R. § 110-21C-5