Calculation of Credit

7.1. The definition of “taxes paid” requires that the amount subject to the credit be determined after application of any discount for early payment but before application of any penalty or interest for late payment.

7.1.1. W. Va. Code §11A-1-3 authorizes the payment of ad valorem taxes in two installments. The first installment is payable on or before September 1st and becomes delinquent on October 1st. The second installment is payable on or before the succeeding March 1st and becomes delinquent April 1st.

7.1.2. Taxes paid on or before the date they are payable are subject to a 2 ½% discount. Delinquent taxes are subject to accrued interest at the rate of 9% per year, and the accrued interest is added to the delinquent taxes until the taxes plus interest are paid.

7.1.3. “Taxes paid” therefore is the amount remaining either after the tax amount due is reduced by the application of the discount or before the tax amount due is increased by the addition of any interest or penalties.

7.2. Examples are found in the appendix to this rule.
APPENDIX

Example 1.
The credit available (when the taxpayer pays the property tax liability after the date for eligibility to receive a 2 ½ % discount) for eligible property with an assessed value of $30,000 is calculated as follows.

Assessed value of eligible property as found on county property book. $ 30,000 Homestead Exemption 20,000 Taxable assed value 10,000 Average tax rate (varies by county) .0123 Property tax due the county sheriff $ 123.00* Tax credit available to eligible owner $ 123.00

*paid after discount period expires

Example 2.
The credit available (when the taxpayer pays the property tax liability on or before the date for eligibility to receive a 2 ½% discount) for eligible property with an assessed value of $25,000 is calculated as follows.

Assessed value of eligible property as found on county land book $ 25,000 Homestead Exemption 20,000 Taxable assessed value 5,000 Average tax rate (varies by county) .0123 Property tax due the county sheriff $ 59.96* Tax credit available to eligible owner $ 59.96

*paid before discount expires

Example 3.
The credit available for eligible property with an assessed value of $19,000 is calculated as follows.

Assessed value of eligible property as found on county land book $19,000 Homestead Exemption 20,000 Taxable assessed value 0 Property taxes due the county sheriff 0 Tax credit available 0