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110CSR21H

7

5.3.3. Electing small business corporations, limited liability companies treated as partnerships for federal income tax purposes, partnerships, and other unincorporated organizations shall allocate the small business property tax adjustment credit among its members in the same manner as profits and losses are allocated for the taxable year.

5.4. 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).

5.5. Annual schedule. Taxpayers claiming the small business property tax adjustment credit must prepare and file with the Tax Division an annual schedule showing: (1) the aggregate appraised value of all property in the state owned by the eligible taxpayer and of any related entity, (2) the amount of the applicable income tax paid for the taxable year, (3) the amount of West Virginia ad valorem personal property tax paid during the taxable year, and (4) the amount of small business property tax adjustment credit allowed for the taxable year.

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Page 8

Official source

110CSR21H

7

5.3.3. Electing small business corporations, limited liability companies treated as partnerships for federal income tax purposes, partnerships, and other unincorporated organizations shall allocate the small business property tax adjustment credit among its members in the same manner as profits and losses are allocated for the taxable year.

5.4. 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).

5.5. Annual schedule. Taxpayers claiming the small business property tax adjustment credit must prepare and file with the Tax Division an annual schedule showing: (1) the aggregate appraised value of all property in the state owned by the eligible taxpayer and of any related entity, (2) the amount of the applicable income tax paid for the taxable year, (3) the amount of West Virginia ad valorem personal property tax paid during the taxable year, and (4) the amount of small business property tax adjustment credit allowed for the taxable year.