Supplement: WV HB2121 | 2025 | Regular Session | Tax & Revenue Department, WV State
For additional supplements on West Virginia HB2121 please see the Bill Drafting List
Bill Title: Deceased Disabled Veteran Real Property Exemption for Widowed Spouses
Status: 2025-02-12 - To House Finance [HB2121 Detail]
Download: West_Virginia-2025-HB2121-Tax_Revenue_Department_WV_State.html
The stated purpose of this bill is to provide for a deceased disabled veteran real property exemption for widowed spouses. According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a "Disabled veteran taxpayer" in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. "Disabled veteran taxpayer-Eligible Widowed Spouse" is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible "Disabled veteran taxpayer" can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were had previously received the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025. Per our interpretation, passage of this bill would reduce General Revenue collections by $1.2 million beginning in FY2026. Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a "Disabled veteran taxpayer" in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. "Disabled veteran taxpayer-Eligible Widowed Spouse" is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible "Disabled veteran taxpayer" can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were had previously received the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025. Per our interpretation, passage of this bill would reduce General Revenue collections by $1.2 million beginning in FY2026. Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov
Bill Title: Deceased Disabled Veteran Real Property Exemption for Widowed Spouses
Status: 2025-02-12 - To House Finance [HB2121 Detail]
Download: West_Virginia-2025-HB2121-Tax_Revenue_Department_WV_State.html
FISCAL NOTE
| Date Requested: February 12, 2025 Time Requested: 08:00 PM |
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FUND(S):
General Revenue FundSources of Revenue:
General FundLegislation creates:
Decreases Existing Revenue, Increases Existing ExpensesFiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide for a deceased disabled veteran real property exemption for widowed spouses. According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a "Disabled veteran taxpayer" in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. "Disabled veteran taxpayer-Eligible Widowed Spouse" is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible "Disabled veteran taxpayer" can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were had previously received the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025. Per our interpretation, passage of this bill would reduce General Revenue collections by $1.2 million beginning in FY2026. Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
Fiscal Note Detail
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2025 Increase/Decrease (use"-") |
2026 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 1,100 | 0 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 0 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 1,100 | 0 | 0 |
| 2. Estimated Total Revenues | 0 | -1,200,000 | -1,200,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, the legislation would expand the personal income tax credit for ad valorem property taxes paid on a homestead by a disabled veteran eligible for the credit to their eligible widowed spouse. During the 2023 regular session, legislation was passed to create a refundable personal income tax credit for a "Disabled veteran taxpayer" in the amount of West Virginia ad valorem property tax timely paid on his or her homestead during the personal income taxable year. "Disabled veteran taxpayer-Eligible Widowed Spouse" is defined as a person who is the un-remarried surviving spouse of a disabled veteran taxpayer who had previously received the disabled veteran real property tax credit. The first tax year for which an eligible "Disabled veteran taxpayer" can receive the credit is tax year 2024. The language of the bill restricts the tax credit for eligible widowed spouses to the widows of disabled veterans which were had previously received the credit. Therefore, the first tax year for which an eligible widowed spouse could claim the credit is tax year 2025. Per our interpretation, passage of this bill would reduce General Revenue collections by $1.2 million beginning in FY2026. Additional administrative costs incurred by the State Tax Department will be $1,100 in FY2025.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov
