SB 144 — Providing phased-in increase in homestead exemption

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 144 NOTEBYS ByENATORSB SenatorARRET, BarrettHELTON,ANDQ [IntroducedUEEN January[Reported 14,February 2026;27 2026, from the Committee on Finance] CS for SB 144 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 144 2026R1266 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;

allowing future changes may be made by voter approval;

Twenty thousand dollar PhaseIncreasing in of increasing homestead exemption allowed.

– An exemption from ad valorem property taxes shall be allowed for the first $20,000 not less than $25,000$40,000 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.

TheEffective LegislatureJanuary shall1, have2027, authoritythe tocounties makemay futureadjust modificationsthe toamount of the homestead property exemption byfor generalcitizens law:Provided,of Thatthe anstate owner who receivesare a65 similaryears exemptionof forage aor homesteadolder inor anotherare statepermanently isand ineligibletotally fordisabled by submitting the exemptionquestion providedto bythe voters, subject to the limitations in this section.

The amount of the homestead exemption may be raised or lowered if approved by a majority of the voters in the county, subject to the limitations in this section, including the $40,000 minimum:

Provided, That an owner who receives a similar exemption for a homestead in another state is ineligible for the exemption provided by this section.

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 tenCS for SB 144 10 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 upon active Intr SB 144 2026R1266 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;

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

--— The residency requirement specified in subsection (a) of this section is enacted pursuant to the Legislature's authority to prescribe by general law requirements, limitations and conditions for the homestead exemption, as set forth in section one-b, article ten 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 CS for SB 144 that becomes final, this section shall then be construed and applied, beginning with the July first 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.

Intr SB 144 2026R1266 (d) Effective datedate. -- The changes made to this section during the regular session of the Legislature, 2026, 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 changes made to this section during the regular session of the Legislature, 2026, 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 of this code is greater than the total assessed value of the eligible homestead, no taxes shall be levied.

[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.