Page 5

110CSR21H

4 must have been timely made, meaning that it must be received by the county sheriff on or before the due date for paying the tax. Payments made that are untimely, delinquent, or for “back taxes” are not allowed to be used for purposes of the credit.

3.3. Refundable nature of the credit. ‐‐ If the amount of the annual tax credit exceeds the amount of the applicable income tax, then the taxpayer may claim the excess amount as a refundable tax credit. A taxpayer must file a personal income tax return or corporation net income tax return to claim the refundable credit, even if the taxpayer owes no income tax for the relevant income tax year. However, any refundable tax credit amount is subject to offset, meaning that the amount refunded may be reduced by the amount of any other tax owed by the same taxpayer, pursuant to W. Va. Code §11‐10‐11(j).

3.4. Transfer or sale of the motor vehicle. ‐‐ When there is a sale or transfer of a motor vehicle from an eligible taxpayer to any other person or entity, the consequences are:

3.4.1. The transferor of the motor vehicle retains entitlement to the tax credit for the timely paid ad valorem property tax paid on the motor vehicle by the transferor during the transferor’s applicable income tax year.

3.4.2. If the transferee of the motor vehicle qualifies as an eligible taxpayer for purposes of the motor vehicle property tax adjustment credit, then the transferee is entitled to the tax credit for the timely paid ad valorem property tax paid by the transferee on the motor vehicle during the transferee’s applicable income tax year.

3.4.3. The transferor and transferee cannot both take the tax credit for the same taxable year.

3.5. For purposes of claiming the tax credit, the taxpayer is required to prepare and file an annual schedule in a form prescribed by the Tax Commissioner that shows: (1) the amount of personal income tax or corporation net income tax for the taxpayer’s taxable year, (2) the amount of ad valorem property tax paid on the motor vehicle during the income taxable year, and (3) the amount of credit allowed.

§110‐21H‐4. Disabled Veteran Real Property Tax Credit.

4.1. Disabled veterans or an eligible widowed spouse is entitled to a tax credit against their personal income tax in the amount of the timely paid West Virginia ad valorem real property tax paid on the disabled veteran’s homestead during the personal income tax year.

4.2. For purposes of the disabled veteran real property tax credit, a “qualified disabled veteran” is both:

4.2.1. Honorably discharged from any branch of the armed services of the United States. For purposes of this requirement, the term “any branch of the armed services of the United States” means the Army, Navy, Air Force, Marine Corps and Coast Guard, the reserve components thereof, and the National Guard of the United States or the National Guard of a state or territory when members of the same have served on full‐time active duty pursuant to Title 10 or Title 32 of the United States Code. To claim this credit, the taxpayer must provide documentation of honorable discharge.

4.2.2. Determined by the federal Department of Veterans Affairs to be at least 90 percent totally and permanently disabled due solely to service‐connected disabilities. To claim the credit, the taxpayer must provide documentation of the determination by the Department of Veterans Affairs.

4.3. Once the taxpayer has provided documentation regarding discharge status and disability under