The proposed bill aims to establish the Construction Cost Relief Act in West Virginia, which introduces a tax rebate for individuals purchasing construction materials for new residential housing. Under the new provisions, individuals who buy materials for single-family homes intended for home ownership will be eligible for a sales tax refund upon the completion and sale of the home. The rebate will be calculated based on the recorded sales price as indicated on the "Closing Disclosure," with specific guidelines for determining the maximum sales value eligible for the rebate based on county sales prices.

Additionally, the bill outlines the method for calculating the rebate, which will utilize the annual housing index report from the State Tax Department. It specifies that builders in counties with sales prices above the state average can claim a rebate based on 1.35 times the sales price, while those in counties below the average will use the state average multiplied by 1.35. The bill also includes a provision stating that the right to receive any refund is non-assignable and must be claimed within one year of construction completion. The provisions of the act will apply to homes for which construction begins on or after July 1, 2026.

Statutes affected:
Introduced Version: 11-27-1, 11-27-2, 11-27-3, 11-27-4, 11-27-5