W. Va. Code R. § 110-21H-4

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

Section 110-21H-4 - Disabled Veteran Real Property Tax Credit

4.1. Disabled veterans are entitled to a tax credit against their personal income tax in the amount of the timely paid West Virginia ad valorem real property tax paid on the disabled veteran's homestead during the personal income tax year.

4.2. For purposes of the disabled veteran real property tax credit, a "qualified disabled veteran" is both:

4.2.1. Honorably discharged from any branch of the armed services of the United States. For purposes of this requirement, the term "any branch of the armed services of the United States" means the Army, Navy, Air Force, Marine Corps and Coast Guard, the reserve components thereof, and the National Guard of the United States or the National Guard of a state or territory when members of the same have served on full-time active duty pursuant to Title 10 or Title 32 of the United States Code. To claim this credit, the taxpayer must provide documentation of honorable discharge.

4.2.2. Determined by the federal Department of Veterans Affairs to be at least 90 percent totally and permanently disabled due solely to service-connected disabilities. To claim the credit, the taxpayer must provide documentation of the determination by the Department of Veterans Affairs.

4.3. Once the taxpayer has provided documentation regarding discharge status and disability under subsections 4.2.1., and 4.2.2., the taxpayer does not need to provide that documentation for subsequent tax years unless the discharge status or disability has changed, or additional information is requested by the Tax Commissioner.

4.4. For purposes of this credit, a "qualified veteran's homestead" is used and occupied exclusively for residential purposes by the qualified disabled veteran that owns it and is Class II property as described in W.Va. Code §11-8-5. The homestead must be used as an abode, dwelling, or habitat for more than six consecutive months of the calendar year; and the property must be used only as an abode, dwelling or habitat to the exclusion of any commercial use. The requirement that the property is used as an abode, dwelling or habitat for more than six consecutive months of the calendar year means that the disabled veteran can claim only one property as their homestead during any taxable year.

4.5. Amount of credit. The amount of the credit is the amount of West Virginia ad valorem real property tax timely paid on the qualified veteran's homestead during the veteran's personal income tax year. The payment must have been timely made, meaning that it must be received by the county sheriff on or before the due date for paying the tax. Payments made that are untimely, delinquent, or for "back taxes" are not allowed to be used for purposes of the disabled veteran real property tax credit.

4.6. Refundable nature of the credit. If the amount of the annual tax credit exceeds the amount of the qualified disabled veteran's income tax, then the taxpayer may claim the excess amount as a refundable tax credit. A qualified disabled veteran taxpayer must file a personal income tax return to claim the refundable credit, even if the taxpayer owes no income tax for the relevant income tax year. However, any refundable tax credit amount is subject to offset, meaning that the amount refunded may be reduced by the amount of any other tax owed by the same taxpayer, pursuant to W. Va. Code §11-10-11(j).

4.7. Termination of the credit. The disabled veteran real property tax credit is terminated upon the occurrence of any of the following:

4.7.1. Death of the qualified disabled veteran owner of the property for which property taxes were paid;

4.7.2. Sale of the qualified veteran's homestead;

4.7.3. A determination from the Department of Veterans Affairs that the disabled veteran owner no longer qualifies; or

4.7.4. A determination by the county assessor that the property for which the tax credit was approved no longer qualifies for the tax credit.

W. Va. Code R. § 110-21H-4