Bill Text: WV HB5542 | 2024 | Regular Session | Introduced
Bill Title: To allow for a full rebate for the amount of taxes paid for aircraft.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced) 2024-02-09 - To House Finance [HB5542 Detail]
Download: West_Virginia-2024-HB5542-Introduced.html
FISCAL NOTE
2024 regular session
Introduced
House Bill 5542
By Delegates Lucas, W. Hall, Howell, W. Clark, and DeVault
[Introduced February 09, 2024; Referred to the Committee on Finance]
A BILL to amend the Code of West Virginia, 1931, as amended; by adding thereto a new section, designated §11-6H-8, all relating to authorizing a refundable tax credit applied against personal income tax or corporation net income tax based upon amount of property tax timely paid on aircraft; providing for the treatment of credit upon transfer of eligible aircraft; and providing for the application of tax credits..
Be it enacted by the Legislature of West Virginia:
ARTICLE 6H. VALUATION OF SPECIAL AIRCRAFT PROPERTY.
§11-6H-8. Aircraft property tax adjustment credit.
(b) "Eligible taxpayer" defined.—
(1) "Eligible taxpayer" – Aircraft — "Eligible taxpayer" means any person who owns an aircraft, as otherwise defined in §11-6H-2 of this article, or which the ad valorem property tax has been paid during the corporation net income tax taxable year or the personal income tax taxable year, as applicable.
(2) "Eligible taxpayer" – Pass through entities — "Eligible taxpayer" also means and includes any owner, interest holder, partner or S corporation shareholder that derives conduit income from a pass-through entity.
(3) "Eligible taxpayer" – Prohibition for aircraft dealers — "Eligible taxpayer" does not mean or include any aircraft dealer, aircraft dealership, retailer or any business that sells new or used aircraft at the retail level, other than a lessor of aircraft. In circumstances where any such aircraft dealer, aircraft dealership, retailer or business that sells new or used aircraft at the retail level is engaged in both retail sales of aircraft, and leasing of aircraft as lessor, the tax credit authorized by this article may only be asserted by such business based upon the ad valorem property tax paid on leased aircraft, and only to the extent that the lessor has passed on, to the lessee, the value of the tax credit asserted by the lessor by causing a decreasing in the amount of rent or lease payment payable by the lessee on the leased aircraft. No credit may be asserted or applied by the business based upon ad valorem property tax paid on aircraft retail inventories, not actively leased to lessees. To the extent that aircraft retail inventories may be held as both aircraft retail inventories, and as aircraft potentially subject to lease during the taxable year, ad valorem property tax paid on such aircraft is excluded from eligibility for the tax credit authorized by this article.
(c) Amount of credit. – The amount of credit allowed under this article to the eligible taxpayer is the amount of West Virginia ad valorem property tax timely paid during the personal income taxable year or the corporation net income tax taxable year, as applicable, to a county sheriff on the value of aircraft owned by the eligible taxpayer: Provided, That in no case shall any credit be allowed under this article for any untimely ad valorem property tax paid, or any payment of delinquent ad valorem property tax, or payment of "back tax" ad valorem property taxes.
(d) Application of credit against personal income tax and corporation net income tax. –
(1) Personal income tax – If the eligible taxpayer is subject to the personal income tax imposed by §11-21-1 et seq. of this code, the amount of credit allowed shall be taken against the personal income tax liability of the eligible taxpayer for the current personal income tax taxable year.
(2) Corporation net income tax — If the eligible taxpayer is subject to the corporation net income tax imposed by §11-24-1 et seq. of this code, the amount of credit allowed shall be taken against the corporation net income tax liability of the eligible taxpayer for the current corporation net income tax taxable year.
(e) Refundable portion of annual credit allowance. — If annual tax credit allowed under this article exceeds the amount of personal income tax or corporation net income tax, as applicable, subject to offset under this article in any taxable year, the eligible taxpayer may claim, for that taxable year, the excess amount as a refundable tax credit.
(f) Transfer or sale of the aircraft. —
(1) Where there is a sale or transfer of the aircraft from an eligible taxpayer to any other person or entity, the transferor retains entitlement to the tax credit authorized under this article for the timely paid ad valorem property tax paid by the transferor in the transferor’s personal income tax taxable year or corporation net income tax taxable year, as applicable, on the transferred aircraft.
(2) If the transferee meets all requirements for qualification as an eligible taxpayer under this article and meets all requirements for entitlement to the tax credit authorized under this article, then the transferee shall be entitled to the tax credit authorized under this article for the timely paid ad valorem property tax paid by the transferee in the transferee’s personal income tax taxable year or corporation net income tax taxable year, as applicable on the eligible aircraft.
(3) In no case shall the transferor and the transferee take the tax credit authorized under this article for the same taxable year.
(g) Annual schedule. — The Tax Commissioner shall prescribe and supply all necessary instructions and forms for administration of this section. For purposes of asserting the credit against tax, the taxpayer shall prepare and file an annual schedule showing the amount of personal income tax paid for the taxable year, and the amount of property tax paid on the aircraft for the taxable year, and the amount of credit allowed under this article. The annual schedule shall set forth the information and be in the form prescribed by the Tax Commissioner.
NOTE: The purpose of this bill is to allow for a full rebate for the amount of taxes paid for aircraft.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
