CHARLESTON — State residents who pay their full vehicle personal property taxes before Oct. 1 will receive the entire amount back in the form of a credit when they file their 2024 state income tax returns early next year.
The rebate is part of a package of tax cuts the state legislature passed in 2023.
State Revenue Secretary Larry Pack said the full amount of the tax must be paid by Oct. 1 to get the full credit.
“When you file your personal income tax return, you’ll receive the credit dollar-for-dollar but in order to get that dollar-for-dollar credit you have to pay your tax timely,” Pack said.
The tax department has estimated the credit will cost the state budget $150 million.
West Virginia vehicle owners pay annual taxes for their vehicles. The money is paid to the county sheriff’s office. The amount of the tax varies per vehicle.
Eliminating the tax was a big part of tax cut discussions by Gov. Jim Justice and state lawmakers in 2023. They finally agreed on a final package that includes a tax credit. Basically taxpayers will keep paying the annual tax but then mark the credit on their state tax returns and get all of the money back through a credit to their taxable income.
The credit works better for counties because it allows them to keep the personal property revenue that comes in. The state’s general revenue fund will shoulder the cost of the tax cut.
Pack said the credit can create some confusion so the state Tax Department will take an additional step to help taxpayers.
“They’re planning to mail everyone a certificate in the first few weeks of January, letting them know what personal property taxes paid are eligible for the credit,” Pack said. “This administration is being pro-active to send out to taxpayers what amount of credit they are eligible for.”
What if you don’t file a state income tax return? “The tax department will have an online portal that you can claim the credit if you don’t typically file an income tax return. It’s similar to what we do with the senior citizens credit,” Pack said.
