Does West Virginia Have Personal Property Tax?

West Virginia has a personal property tax, an annual tax on movable assets owned by individuals and businesses. This tax is administered at the county level and is separate from real estate tax, which applies to land and buildings. Revenue from this tax funds local services like schools and law enforcement, and it is based on the property’s value on the annual assessment date.

Identifying Taxable Personal Property

In West Virginia, taxable personal property for individuals includes a variety of movable assets. The most common taxable items are motor vehicles, including cars, trucks, and motorcycles. Utility trailers, campers, recreational vehicles (RVs), all-terrain vehicles (ATVs), and boats are also subject to this tax.

Businesses are required to pay personal property tax on assets like machinery, equipment, furniture, fixtures, and inventory.

Certain types of personal property are exempt from this tax. For individuals, common household goods and personal effects not used for a business are not taxed. Intangible personal property, such as stocks and bonds, is also exempt.

Completing Your Annual Property Assessment

The annual assessment is managed by the County Assessor’s office. Every year, property owners must report all taxable personal property they own as of July 1st. This is done using a form from the assessor’s office, which is often mailed to residents or available for download on the county’s website.

To complete the assessment form, you must provide specific details for each property. For vehicles, this includes the Vehicle Identification Number (VIN), make, model, year, and the date and price of purchase. The completed form must be returned to the County Assessor’s office by the statewide deadline of October 1.

The assessor uses the information you provide and standardized valuation guides to determine the market value of your property. The assessed value for tax purposes is then set at 60% of this market value. Failure to file the assessment form can lead to penalties.

The Tax Billing and Payment Procedure

The County Sheriff’s office, not the assessor, is responsible for the billing and collection of property taxes. The sheriff’s office mails tax bills to property owners based on the assessment valuations and levy rates applicable in that county.

Payments are structured into two installments. The first installment is payable on September 1 and becomes delinquent if not paid by October 1. The second installment is payable on March 1 of the following year and becomes delinquent if not paid by April 1. Paying each installment before it becomes delinquent qualifies you for a 2.5% discount on that portion of the bill.

Payment can be made by mail, in person at the county sheriff’s tax office, or through an online payment portal if available. The Division of Motor Vehicles requires confirmation that personal property taxes are paid before it will renew a vehicle’s registration.

Personal Property Tax Credits

West Virginia offers a tax credit that can offset the cost of personal property taxes paid on certain vehicles. First claimable on 2024 tax returns, the Motor Vehicle Personal Property Tax Adjustment Credit is available to eligible residents. This refundable credit applies to taxes paid on a broad range of vehicles, including cars, trucks, motorcycles, trailers, and ATVs/UTVs.

The credit is based on the property tax paid, subject to certain limitations. Because the credit is refundable, if the amount is more than the income tax you owe, you will receive the difference as a refund.

To claim the credit, you must be a West Virginia resident who has paid the personal property tax on an eligible vehicle. Most residents claim the credit when filing their state income tax return. Individuals who are not required to file an income tax return can file a claim for a rebate directly through the West Virginia Tax Division’s online portal.