SB 724 — Relating to taxation

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 724 NOTEBY BySENATORS SenatorBARRETT, BarrettWILL,AND [IntroducedHAMILTON [Reported March 7,27, 2025;2025, from the Committee on Finance] CS for SB 724 A BILL to amend and reenact §11-6B-3 and §11-6B-7 of the Code of West Virginia, 1931, as amended;

referred to the Committee on Finance] Intr SB 724 2025R3689 A BILL to amend and reenact §11-6B-3 and §11-6B-7 of the Code of West Virginia, 1931, as amended;

providing for aan phased-in increase in the homestead exemption;

Twenty thousand dollar PhasePhase-in in of increasing homestead exemption allowed.

– BeginningAn January 1, 2027, an exemption from ad valorem property taxes shall be allowed for the first $20,000 not less than $25,000 of assessed value of a homestead that is used and occupied by the owner thereof exclusively for residential purposes, when such owner is sixty-five 65 years of age or older or is certified as being permanently and totally disabled provided the owner has been or will be a resident of the State of West Virginia for the two consecutive calendar years preceding the tax year to which the homestead exemption relates.

BeginningThe JanuaryLegislature 1,shall 2028,have theauthority amountto ofmake thefuture exemptionmodifications of assessed value of a homestead as provided in this section shall increase to $30,000, beginning January 1, 2029, the amount of the exemption of assessed value of a homestead asproperty provided in this section shall increase to $35,000, and beginning January 1, 2030, the exemption ofmade assessedby valuegeneral oflaw: a homestead as provided in this section shall increase to $40,000:

Provided, however, That when a resident of West Virginia establishes residency in another state or country and subsequently returns and reestablishes residency in West Virginia within a period of five years, such resident may be allowed a homestead exemption without satisfying the requirement of two years consecutive residency if such person was a resident of this state for two calendar years out of the Intr10 SB 724 2025R3689 ten calendar years immediately preceding the tax year for which the homestead exemption is sought.

Additionally, when a person is a resident of this state at the time such person enters CS for SB 724 upon active duty in the military service of this country and throughout such service maintains this state as his or her state of residence, and upon retirement from the military service, or earlier separation due to a permanent and total physical or mental disability, such person returns to this state and purchases a homestead, such person is deemed to satisfy the residency test required by this section and shall be allowed a homestead exemption under this section if such person is otherwise eligible for a homestead exemption under this article;

and the Tax Commissioner may specify, by regulation promulgated under chapter twenty-nine-a29A of this code, what constitutes acceptable proof of these facts.

--— This exemption shall attach to the homestead occupied by the qualified owner on the July first1 assessment date and shall be applicable to taxes for the following tax year.

An exemption shall not be transferred to another homestead until the following July first.1.

If the homestead of an owner qualified under this article is transferred by deed, will or otherwise, the $20,000 exemption as provided in subsection (a) of this section shall be removed from the property on the next July first1 assessment date unless the new owner qualifies for the exemption.

--— The residency requirement specified in subsection (a) of this section is enacted pursuant to the Legislature's authority to prescribe by general law requirements, limitationslimitations, and conditions for the homestead exemption, as set forth in section one-b, article tenX, of the Constitution of this state.

Should the Supreme Court of Appeals or a federal court of competent jurisdiction determine that this residency requirement violates federal law in a decision that Intr SB 724 2025R3689 becomes final, this section shall then be construed and applied, beginning with the July first1 assessment day immediately following the date the decision became final, as if the residency requirement had not been enacted, thereby preserving the availability of the homestead exemption and the fiscal integrity of local government levying bodies.

(d)CS Effectivefor dateSB --The724 changes(d) madeEffective todate. this section during the 2025 Regular Session of the Legislature shall become effective only upon the ratification of the constitutional amendment proposed in Senate Joint Resolution 14, which will be submitted to the voters following the adoption of that resolution by the Legislature during the 2025 Regular Legislative Session, or any other amendment to the Constitution of West Virginia permitting a homestead property exemption.

—The changes made to this section during the regular session of the Legislature, 2025, shall become effective only upon the ratification of a constitutional amendment submitted to the voters following the adoption of a resolution by the Legislature providing for an increase in the homestead property exemption, or any other amendment to the Constitution of West Virginia permitting a homestead property exemption.

--— The exemption of the first $20,000 of assessed value as set forth in §11-6B-3 of this code shall be shown on the property books as a deduction from the total assessed value of the homestead.

--— When the $20,000 exemption as set forth in §11-6B-3§11- 6B-3 of this code is greater than the total assessed value of the eligible homestead, no taxes shall be levied.

Effect on regular levy rateratewhen when appraisal results in tax increase;

[Repealed.] NOTE:3

The purpose of this bill is to provide for a phased in increase in the homestead exemption;

provide that change to exemption contingent on passage of constitutional amendment;

and repeal limitation on levy rates when appraisal results in tax increase.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.