West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21H - Income Tax Credits For Property Taxes Paid › Section 110-21H-3 - Motor Vehicle Property Tax Adjustment Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Eligible taxpayers -- for purposes of
				the motor vehicle property tax adjustment credit, the term "eligible taxpayer"
				has different definitions, depending on the ownership of the vehicle.
3.1.1. Vehicles owned by the taxpayer. In the
				case of a vehicle that is owned by the taxpayer, an "eligible taxpayer" is any
				person who owns a motor vehicle for which the
ad valorem
property tax has been timely paid during the corporation net income tax taxable
				year or the personal income tax taxable year, as applicable. For purposes of
				this definition, ownership of a motor vehicle includes ownership and possession
				of a motor vehicle for which a title has been issued by the Division of Motor
				Vehicles to the eligible taxpayer. For purposes of this definition, ownership
				of a motor vehicle also includes ownership and possession of a motor vehicle,
				subject to a purchase financing arrangement whereby a financial institution
				holds a lien on the motor vehicle, or for which ultimate issuance of title by
				the Division of Motor Vehicles to the taxpayer, as owner of the motor vehicle,
				is contingent upon payment in full of the purchase price of the motor vehicle
				pursuant to an installment payment financing arrangement.
3.1.2. Leased vehicles. In the case of a
				vehicle that is subject to lease agreement between the owner of the vehicle and
				the operator of the vehicle, an "eligible taxpayer" is the lessor of the motor
				vehicle, who owns the motor vehicle for which the
ad valorem
property tax has been timely paid during the corporation net income tax taxable
				year or the personal income tax taxable year, as applicable. The lessor must
				pass on to the lessee the value of the tax credit asserted by the lessor by
				causing a decreasing in the amount of rent or lease payment payable by the
				lessee on the leased motor vehicle.
3.1.3. Pass-through entities. The term
				"eligible taxpayer" includes any owner, interest holder, partner or S
				corporation shareholder that derives conduit income from a pass-through
				entity.
3.1.4. Motor vehicle
				dealers. The term "eligible taxpayer" does not include any motor vehicle
				dealer, motor vehicle dealership, retailer or any business that sells new or
				used motor vehicles at the retail level, other than a lessor of motor vehicles.
				In circumstances where any such motor vehicle dealer, motor vehicle dealership,
				retailer or business that sells new or used motor vehicles at the retail level
				is engaged in both retail sales of motor vehicles, and leasing of motor
				vehicles as lessor, the tax credit authorized by this article may only be
				asserted by such business based upon the
ad valorem
property
				tax paid on leased motor vehicles, and only to the extent that the lessor has
				passed on, to the lessee, the value of the tax credit asserted by the lessor by
				causing a decreasing in the amount of rent or lease payment payable by the
				lessee on the leased motor vehicle. No credit may be asserted or applied by the
				business based upon
ad valorem
property tax paid on motor
				vehicle retail inventories, not actively leased to lessees. To the extent that
				motor vehicle retail inventories may be held as both motor vehicle retail
				inventories, and as motor vehicles potentially subject to lease during the
				taxable year,
ad valorem
property tax paid on such motor
				vehicles is excluded from eligibility for the tax credit authorized by this
				rule.