West Virginia

Department of

Tax and Revenue

Publication TSD-387

(Rev. August, 2002)

SUMMARY OF TAX RESPONSIBILITIES OF

WEST VIRGINIA RESIDENTS

PERSONAL INCOME TAX

The West Virginia Personal Income Tax (WVPIT) is an annual tax similar to the federal

income tax. Calendar year taxpayers must file an annual return by April 15th each year for

the preceding year.

At least 90 percent of one's tax liability must be prepaid through any combination of

employer withholding and payments of estimated tax.

Federal adjusted gross income is the starting point for determining WVPIT liability. A

number of increasing and decreasing modifications are made to determine West Virginia

adjusted gross income.

A personal exemption of $2,000 is allowed for each personal exemption the individual

may claim for Federal income tax purposes. West Virginia does not allow either a standard

deduction or itemized deductions to be claimed when determining West Virginia taxable

income.

(1) An individual who is age 65 or older, or who has been certified permanently and

totally disabled (regardless of age), may deduct from their federal adjusted gross

income up to $8,000 of his or her income received from any source. If a joint return

is filed by two qualifying individuals, up to $8,000 of income received by each

individual may be deducted.

(2) An individual who is not age 65 or older, and is not permanently and totally disabled,

may generally deduct up to $2,000 of retirement income received from the Federal

government or the State of West Virginia.

SALES TAX

The Consumers Sales and Service Tax ("sales tax") is imposed on all sales of tangible

personal property or taxable services unless the sale is specifically exempt by statute. Tax

applies to sales of food but not to sales of prescription drugs. Tax does not apply to

professional services, personal services (such as those rendered to an individual by

barbers and beauticians), services regulated by the Public Service Commission, or capital

improvements to real property. Motor vehicles subject to the motor vehicle title privilege tax are

exempt from sales tax. The rate of tax is 6 percent of the sales price.

A 6 percent compensating use tax is imposed on persons purchasing tangible personal

property or taxable services from out-of-state vendors when the purchase is for use in this State.

Unless this tax is collected by the out-of-state vendor, it must be remitted directly to the Tax

Commissioner. Credit is allowed for sales or use taxes paid to another state with respect to the

purchase.

PROPERTY TAX

The West Virginia Property Tax is an annual tax imposed on personal (tangible as well as

intangible) and real property. Collections primarily benefit county boards of education, county

commissions and municipalities.

The West Virginia Constitution specifies that the assessed value of property is 60 percent of

its fair market value. All property is taxable except that which the Constitution exempts from

taxation and that which the Legislature exempts from taxation pursuant to an express grant of

authority in the Constitution. Exemptions of particular interest to individuals include: cash, bank

accounts, household goods and personal effects. Owners of owner occupied residential real

property, who are age 65 or older (or who are permanently and totally disabled), may be eligible

for a $20,000 homestead exemption. Application for this exemption must be submitted to the

assessor of the county in which the property is located by October 1st for the next calendar year.

(New residents have a two year waiting period.)

The Constitution divides property into four classes for purposes of taxation and imposes a

ceiling on the amount of tax that may be imposed on each class. The maximum regular levy rate

on Class I property cannot exceed 50 cents per $100 of assessed value. (Class II property -

$1.00; Class III property - $1.50; and Class IV property - $2.00 per $100 assessed value.)

Additional or excess levies may be imposed only upon approval of the voters. Excess levies must

be voted upon every three years. (Excess school levies are good for five years.) The statewide

average levy rate for all property for the 1990 tax year was $2.27 per $100 of assessed value.

Intangibles such as taxable stocks, bonds and promissory notes are Class I property. Owner

occupied property used exclusively for residential purposes and farms are Class II property.

Property that is not Class I or II property is Class III property if it is located outside a municipality;

if located inside a municipality it is Class IV property.

Property is assessed in the county where it is located on July 1st each year by a locally elected

county assessor for the next calendar year ('tax year"). This assessed value is used to determine

property taxes. Individuals must file a property tax return with their county assessor by October

1st for the next calendar year. Questions about the assessed value of property may be raised with

the county assessor after the property is returned for taxation but before the end of January of the

then current tax year. The county commission of each county sits as a board of equalization and

review during the month of February each tax year to review and equalize assessments for that

calendar year and to hear appeals concerning assessed value. Property tax levy rates are set

by the various levying bodies during the month of April. Property tax bills (called tax tickets) are

mailed to property owners during the month of July by county sheriffs, who collect the tax. Taxes

are payable in two equal installments. First-half taxes are due September 1st of the tax year and

second-half taxes are due March 1st of the next tax year. A 2.5 percent discount is allowed for

early payment. First-half taxes become delinquent on October 1st of the tax year and secondhalf

taxes become delinquent April 1st of the next tax year. Interest accrues at the rate of 9

percent per year on delinquent taxes.

MOTOR VEHICLE TAXES

An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must

pay a $5.00 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). The

measure of this tax is the net sales price of the vehicle. Trailers, motorboats, all-terrain vehicles

and snow mobiles are also subject to this tax.

If the vehicle is titled in another state and then retitled in this State, or is a used vehicle, the

tax is calculated on the lowest N.A.D.A. (National Automobile Dealers Association) value of the

vehicle. No credit is allowed for sales or other title taxes paid to another state.

Motor vehicles are subject to an annual $30.00 registration fee. At the time of registration, or

renewal of registration, the applicant must submit proof of payment of personal property taxes on

the vehicle and verification of liability insurance.

Every person who operates a motor vehicle on the highways of this State must have a driver's

license. Applicants for a license to operate a passenger car or a light truck are required to pass

a written test and demonstrate actual ability to operate a motor vehicle. The fee for the standard

driver's license is $13.00 and the license is good for a period of five years. If the applicant is also

applying for a license to operate a motorcycle, a separate examination must be passed and a onetime

fee of $5 paid to add a motorcycle endorsement to the standard driver's license.

(1) A nonresident who becomes a resident of this state must register his or her vehicle with

the West Virginia Division of Motor Vehicles within 30 days after moving the vehicle into this

State. Noncompliance is a misdemeanor punishable, upon conviction, by a fine of up to

$500 or imprisonment for not more than six months, or both fine and imprisonment. West

Virginia Code §17A-11-1.

(2) A person licensed to operate a vehicle in another state must surrender his or her out-ofstate

license before a West Virginia driver's license will be issued. A nonresident who

moves to West Virginia, must obtain a West Virginia driver's license within 30 days after

moving into this State. Noncompliance is a misdemeanor punishable, upon conviction, by

a fine of up to $500 or imprisonment for not more than six months, or both fine and

imprisonment. West Virginia Code §17B-5-1.

ESTATE TAX

transfer tax. West Virginia continues to impose an "estate pick-up tax" on resident estates and

nonresident estates with real or tangible personal property located in this State, when such estate

is required to file a Federal estate tax return and is allowed credit against its Federal estate tax

liability for payment of West Virginia estate taxes.

The West Virginia estate tax is equal to the amount of credit the estate is allowed for payment

of federal estate taxes. If death taxes are paid to two or more states, the Federal estate tax credit

is apportioned among the states in which tax is paid.

A West Virginia estate tax return must be filed whenever the gross value of the estate exceeds

$600,000 and the estate is required to file a Federal estate tax return. This return is due nine

months after decedent's death along with payment of any tax that may be due. Any tax not paid

on or before that date is subject to interest and additions to tax.

EXCISE TAX

West Virginia imposes a 20.5 cents per gallon excise tax on gasoline and special fuel sold in

this State. "Special fuel" means any fuel other than gasoline which is commonly used or

practically suited for use as a fuel in an internal combustion engine.

West Virginia also imposes a 4.85 cents per gallon sales tax on gasoline and special fuel.

FOR MORE INFORMATION

Taxpayers who need assistance may contact the Taxpayer Services Division by calling area

code (304) 558-3333 or toll free within West Virginia 1-800-WVA-TAXS (1-800-982-8297), or by

writing to the Taxpayer Services Division, P. O. Box 3784, Charleston, West Virginia 25337-3784.

Tax Division Regional Offices are:

Beckley Regional Office Martinsburg Regional Office

Suite 109, 407 Neville Street 119 North Queen Street

Beckley, WV 25801 Martinsburg, WV 25401

Phone: (304) 256-6870 Phone: (304) 267-0022

Huntington Regional Office North Central Regional Office

1037 Sixth Avenue Huntington Bank Building, Suite 201

Huntington, WV 25701 230 West Pike Street

Phone: (304) 528-5568 Clarksburg, WV 26301

Phone: (304) 627-2109

Parkersburg Regional Office Wheeling Regional Office

400 5th Street 40 14th Street

Parkersburg, WV 26101 Wheeling, WV 26003

Phone: (304) 420-4570 Phone: (304) 238-1152

ESTATE TAX