This bill proposes the creation of a new article in the West Virginia Code that establishes a state sales tax rebate for qualifying materials used in the construction of modest homes, defined as those with 1,600 square feet or less. The rebate will be limited to the state’s six percent sales tax and will only apply to materials purchased from in-state suppliers. Builders can apply for the rebate after the home is sold and inspected, and they must adhere to specific documentation and purchasing requirements. The bill also allows for voluntary participation by municipalities, which can choose to offer additional rebates on their municipal sales taxes.

Additionally, the bill outlines the definitions of eligible modest dwellings, builders, and materials, as well as the quantity limits for various construction materials. It includes provisions for subcontractors to submit affidavits confirming that materials were sourced from in-state suppliers. Penalties are established for those who submit false documentation, including repayment of the rebate and potential fines. The State Tax Commissioner is tasked with proposing rules for the administration of this rebate program, which is set to take effect on July 1, 2026.

Statutes affected:
Introduced Version: 11-15C-1, 11-15C-2, 11-15C-3, 11-15C-4, 11-15C-5, 11-15C-6, 11-15C-7, 11-15C-8, 11-15C-9, 11-15C-10