dbeard@dominionpost.com
MORGANTOWN – As the state rolls out its Motor Vehicle Property Tax Adjustment Credit this year, people who lease vehicles will have a different experience from those who own them.
He credit is for the personal property tax vehicle owners pay to their county of residence.
The state Tax Division sums it up this way: “Only individuals and business motor vehicle owners may qualify for the Motor Vehicle Property Tax Adjustment Credit. The credit is only available for the actual tax paid.”
It continues: “Leasing companies qualify for the credit. They are required to pass the savings on to the consumer leasing the motor vehicle. Contact your leasing company for more information on when you can expect to see the discount.”
That means the lessees won’t be getting the MV-1 letter regarding the tax credit that is going out to owners.
The Tax Division said that how a leasing company passes on the credit is between the company and the lessee. “The Tax Division is not a party to any particular lease agreements and cannot provide feedback on the structure of any particular agreement between leasing companies and lessees.”
It’s the company’s responsibility to determine how best to pass the savings along to the lessee. “The Tax Division reserves the authority to audit any claim to ensure compliance with these requirements.”
Some may think that if they lease a vehicle through a dealer, the dealer owns the lease. That’s not the case, Moses Toyota of Morgantown said. The leasing company is a separate entity and owns the vehicle.
The Monongalia County Assessor’s office amplified on how this should unfold. The leasing company is the owner and the company’s name should appear on the registration card.
“Each leasing company is different,” the office said. “It’s actually up to the leasing company how they’re going to handle it with their leases.”
The office said it knows of one or two leasing companies that are electing to just not bill the lessee for the tax.
Lessees who are unsure how their leasing company is going to handle the credit should contact the company, the state and county offices said.
