H. B. 2802
(By Delegates Beach and Buchanan)
[Introduced March 28, 1997; referred to the
Committee on Finance.]
A BILL to amend article twenty-one, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirty-one, relating to personal income tax; and requiring
a nonresident reciprocal income tax.
Be it enacted by the Legislature of West Virginia:
That article twenty-one, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirty-one, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-31. Nonresident reciprocal income tax.
(a) As used in this section, the following phrases have the
meanings ascribed to them:
"Nonresident taxpayer" means a natural person employed in
this state who resides in a bordering state;
"Bordering state" means a state with any border contiguous to
West Virginia, that authorizes income taxation of West Virginia
residents employed in the state.
(b) In addition to all other taxes provided by this chapter,
any local government shall levy a reciprocal income tax on the
income of a nonresident taxpayer employed within the jurisdiction
of the local government at a rate equal to the rate the bordering
state assesses West Virginia residents who work in the bordering
state.
(c) The tax is applicable to earned income received beginning
the first day of January, one thousand nine hundred ninety-eight.
(d) All funds that are collected from this nonresident
reciprocal wage tax shall be remitted to the taxing body.
NOTE: The purpose of this bill is to require local
governments to levy a nonresident reciprocal income tax on
taxpayers who are employed in their jurisdictions but reside in
a bordering state that allows income taxation of West Virginia
resident employees.
This section is new; therefore, strike-throughs and
underscoring have been omitted.