CHARLESTON, W.Va. — State Revenue Secretary Dave Hardy has a tip for state taxpayers—-don’t pay your personal property tax bill all at once this year.
Those tax tickets are starting to come in the mail to state residents. Those are the ones that list personal property taxes including the annual tax on automobiles. The dollar-for-dollar tax credit for automobile taxes was part or the new state law passed earlier this year by lawmakers. That part of the law doesn’t take effect until Jan. 1, 2024, so Hardy said it’s better to pay the bill in two halves instead of all at once.
“You definitely want to pay half. You do not want to pay the full year because when you pay the second half, which is due on April 1, 2024, that will be eligible for the dollar-to-dollar credit,” Hardy said Thursday on MetroNews “Talkline.”
Eliminating the automobile property tax was a big part of tax cut discussions by Gov. Jim Justice and state lawmakers earlier this year. 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.
Hardy said a lot of people pay their full personal property tax bills when they get them from their county assessors in late summer but only paying half will be advantageous for this one year.
“You will get a dollar-for-dollar credit on the second half because it was paid timely in calendar year 2024,” Hardy said.
Those who pay their taxes late won’t get the credit, according to Hardy.
“The statute specifically says they must be timely paid. We’re glad the legislature put that and I’m sure county officials are glad the word ‘timely paid’ is in the legislation,” Hardy said.
Timely in this case means by Oct. 1, 2023, for the first half payment and April 1, 2024, for the second half payment.
The credit will appear on the 2024 state tax return that will be filed in early 2025.
There’s also a new credit for disabled veterans that was approved by state lawmakers and supported by Gov. Justice earlier this year.
“A disabled veteran can get a 100% tax rebate, credit, on the real estate tax for that veteran’s homestead. In other words, their primary residence,” Hardy said.
The credit also takes effect Jan. 1, 2024.
Hardy said those disabled veterans should also wait to pay the second half of their real estate tax until 2024.
There could be as many as 10,000 disabled veterans in West Virginia that will take advantage of the credit, according to Hardy.