SB-1: Small Business Property Tax Adjustment Credit (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Form SB-1 calculates the Small Business Property Tax Adjustment Credit. It records business identification, property tax ticket details, assessed values, and amounts paid on time, then calculates the credit after subtracting amounts eligible for the motor vehicle cr
Who files this form
SB-1 is used to claim the Small Business Property Tax Adjustment Credit. The form directs eligible businesses to file it with their required income tax return.
To qualify under the form’s eligibility checks:
- The aggregate appraised value for the business and its related entities must be $1,000,000 or less.
- You must not hold a working interest in oil, natural gas, or natural gas liquid producing property or in a public service company centrally assessed by the state for property tax purposes.
The form also requires you to divide the total assessed value on line 5 by 0.6. If the result exceeds $1,000,000, you are not eligible.
What you'll need
Have the following information ready to complete SB-1:
- Business FEIN, business name, and address.
- For a sole proprietor, SSN, first name, and last name.
- Information for the business and its related entities to answer the aggregate appraised value question.
- All property tax tickets for which you were assessed, including the county, ticket number, assessed value, ticket amount, and amount paid on time.
- The total amount eligible for the motor vehicle credit, which must be entered on line 7.
How to file
File SB-1 with the required income tax return for the business.
Complete the business identification and eligibility questions, then list all property tax tickets for which you were assessed. Use an additional SB-1 if you have more than 10 tickets.
Calculate the credit as follows:
- Add column C to get the total assessed value on line 5. Divide that total by 0.6 to check the $1,000,000 eligibility limit.
- Add column E to get the total paid on time on line 6.
- Enter the amount eligible for the motor vehicle credit on line 7.
- Subtract line 7 from line 6 and enter the result on line 8.
- Enter half of line 8 as the total credit on line 9.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Including delinquent or back taxes: The form says not to include these in the amount paid on time.
- Leaving out tax tickets: List all property tax tickets for which you were assessed. Complete an additional SB-1 if you have more than 10.
- Ignoring an eligibility stop: Do not claim the credit if the aggregate appraised value exceeds $1,000,000 or if you answer yes to the working-interest question.
- Skipping the assessed-value check: Divide line 5 by 0.6. A result over $1,000,000 makes you ineligible.
Questions people ask
How much is the credit?
The credit is half of line 8. Line 8 is the total property tax paid on time on line 6, minus the amount eligible for the motor vehicle credit on line 7.
Can I include delinquent or back taxes?
No. The form specifically excludes delinquent or back taxes from the amount paid on time.
What if I have more than 10 property tax tickets?
Complete an additional SB-1. The form requires you to list all property tax tickets for which you were assessed.
What identification does a sole proprietor provide?
The form directs sole proprietors to complete the SSN, first name, and last name fields.