Bill Text: WV SB78 | 2018 | Regular Session | Introduced
Bill Title: Continuing personal income tax adjustment for certain retirees
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2018-02-12 - To House Pensions and Retirement [SB78 Detail]
Download: West_Virginia-2018-SB78-Introduced.html
WEST virginia Legislature
2018 regular session
Introduced
Senate Bill 78
By Senators Ferns and Cline
[Introduced January
10, 2018; Referred
to the Committee on Pensions; and then to the Committee on Finance]
A BILL to amend and reenact §11-21-12d of the Code of West Virginia, 1931, as amended, relating to continuing personal income tax adjustment to gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12d. Additional modification reducing federal adjusted gross income.
In
addition to amounts authorized to be subtracted from federal adjusted gross
income pursuant to §11-21-12(c) of this code, any person who retires under an
employer-provided defined benefit pension plan that terminates prior to or
after the retirement of that person and the pension plan is covered by a
guarantor whose maximum benefit guarantee is less than the maximum benefit to
which the retiree was entitled had the plan not terminated may subtract
annually from his or her federal adjusted income a sum equal to the difference
in the amount of the maximum annual pension benefit the person would have received
for such tax year had the plan not terminated and the maximum annual pension
benefit actually received from the guarantor under a benefit guarantee plan:
Provided, That if the Tax Commissioner determines that this adjustment
reduces the revenues of the state by $2 million or more in any one year,
then the Tax Commissioner shall reduce the percentage of the reduction to a
level at which the commissioner believes will reduce the cost of the adjustment
to $2 million for the next year. This tax adjustment is effective for
taxable years beginning on and after January 1, 2008: Provided, however,
That for the taxable year 2007, the tax adjustment shall be is
effective and shall apply applies retroactively: Provided
further, That the tax adjustment terminates for the tax years on
and after taxable year beginning on January 1, 2015: And
provided further, That the tax adjustment is effective for the
taxable years beginning on and after January 1, 2018, and terminates for
taxable years after December 31, 2020. This modification is available
regardless of the type of return form filed.
NOTE: The purpose of this bill is to continue providing a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
