West Virginia assesses an income tax on its residents, applying rates of 3 percent to 6.5 percent over five tax brackets. More on West Virginia taxes can be found in the tabbed pages below.
Income
Sales
Property
Estate
Other
Personal income tax
West Virginia collects income taxes from its residents at the following rates (for single, head of household and married filing jointly taxpayers):
-- 3 percent on the first $10,000 of taxable income.
-- 4 percent on taxable income between $10,001 and $25,000.
-- 4.5 percent on taxable income between $25,001 and $40,000.
-- 6 percent on taxable income between $40,001 and $60,000.
-- 6.5 percent on taxable income
of $60,001 and above.
West Virginia tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Sales tax
The consumer sales and service tax is based on monetary consideration which is the actual cost to the purchaser of tangible personal property or the purchase of a service. The seller of the goods or services is required to collect the tax from their purchasers and remit the tax to the State Tax Department.
The state-wide sales tax rate is 6 percent (4 percent for food). There are currently no municipal sales taxes in West Virginia.
The use tax is a companion tax to the consumers sales and service tax and is based on the purchase price of tangible personal property or taxable services. This tax is required to be paid by individuals or businesses directly to the State Tax Department on tangible personal property or services purchased for which the West Virginia sales tax has not been paid. The state-wide use tax rate is 6 percent.
Effective July 1, 2007, the Sales and Use Tax on the sale, purchase and use of food and food ingredients intended for human consumption is 4 percent, down from the previous 5 percent. This rate reduction, notes the West Virginia State Tax Department, does not apply to food sold in a heated state, prepared food, or food sold with eating utensils provided by the seller.
Also on July 1, 2007, West Virginia's general consumer sales and service tax rate of 6 percent applies to the food items purchased at vending machines, as well as all soft drinkss.
West Virginia counties administer and collect property taxes, although property tax
rates reflect levies for state government, county governments,
county boards of education and municipalities. Counties may
also impose a hotel occupancy tax on lodging places not located
within the city limits of any municipality that levies such
a tax. Municipalities may levy license and gross receipts taxes
on businesses located within the city limits and a hotel occupancy
tax on lodging places in the city.
Although the Department of Tax and
Revenue plays a major role in the administration of this tax,
less than one-half of one percent of the property tax collected
goes to state government. The primary beneficiaries of the property
tax are county boards of education.
Property taxes are paid to the sheriff
of each of the state's 55 counties. Each county and municipality
can impose its own rates of property taxation within the limits
set by the West Virginia Constitution.
The West Virginia legislature sets
the rate of tax of county boards of education. This rate is
used by all county boards of education statewide. However, the
total tax rate for county boards of education may differ from
county to county due to excess levies.
The Department of Tax and Revenue
supervises and otherwise assists counties and municipalities
in their work of assessment and tax rate determination.
The total tax rate is a combination of the tax levies from four state taxing authorities: state, county, schools and municipal. This total tax rate varies for each of the four classes of property, which include personal, real and intangible properties.
Property is assessed according to
its use, location and value as of July 1. All property is reappraised
every three years; annual adjustments are made to assessments
for property with a change of value.
West
Virginia offers a homestead
exemption to its citizens
that are 65 years old or
are permanently disabled.
Inheritance and estate taxes
West Virginia does not impose an
inheritance tax.
Because
of the phaseout of the federal
estate tax credit, West Virginia's
estate tax is not imposed
on estates of persons who
died in 2005.
Other West Virginia tax facts
Senior citizens eligible for the Homestead Exemption Program may be entitled to a refundable income tax credit.
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