WEST virginia legislature
2020 regular session
House Bill 4135
By Delegates Hanshaw (Mr.
Speaker) and Miley
[By Request of the Executive]
[Introduced January 13, 2020; Referred to the Committee on Finance]
A BILL to amend and reenact §11-21-9 of the Code of West Virginia, 1931, as amended, relating to updating meaning of federal adjusted gross income and certain other terms used in West Virginia Personal Income Tax Act; and specifying effective dates.
Be it enacted by the Legislature of West Virginia:
Article 21. WEST VIRGINIA PERSONAL INCOME TAX.
11-21-9. Meaning of terms.
(a) Any term used in this article has the same meaning
as when used in a comparable context in the laws of the United States relating
to income taxes, unless a different meaning is clearly required. Any reference
in this article to the laws of the United States means the provisions of the
Internal Revenue Code of 1986, as amended, and any other provisions of the laws
of the United States that relate to the determination of income for federal
income tax purposes. All amendments made to the laws of the United States after
2017 2018, but prior to January 1, 2019 2020,
shall be given effect in determining the taxes imposed by this article to the
same extent those changes are allowed for federal income tax purposes, whether
the changes are retroactive or prospective, but no amendment to the laws of the
United States made on or after January 1, 2019 2020, may be given
(b) Medical savings accounts. -- The term “taxable trust” does not include a medical savings account established pursuant to §33-15-20 or §33-16-15 of this code. Employer contributions to a medical savings account established pursuant to those sections are not wages for purposes of withholding under §11-21-71 of this code.
(c) Surtax. -- The term “surtax” means the 20 percent additional tax imposed on taxable withdrawals from a medical savings account under §33-15-20 of this code and the 20 percent additional tax imposed on taxable withdrawals from a medical savings account under §33-16-15 of this code which are collected by the Tax Commissioner as tax collected under this article.
(d) Effective date. -- The amendments to this
section enacted in the year
2018 2020 are retroactive to the
extent allowable under federal income tax law. With respect to taxable years
that began prior to January 1, 2019 2020, the law in effect for
each of those years shall be fully preserved as to that year, except as
provided in this section.
(e) For purposes of the refundable credit allowed to a low income senior citizen for property tax paid on his or her homestead in this state, the term “laws of the United States” as used in subsection (a) of this section means and includes the term “low income” as defined in §11-21-21(b) of this code and as reflected in the poverty guidelines updated periodically in the federal register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. § 9902(2).
(f) For taxable years beginning on and after January 1, 2018, whenever this article refers to “each exemption for which he or she is entitled to a deduction for the taxable year for federal income tax purposes,” this phrase means the exemption the person would have been allowed to claim for the taxable year had the federal income tax law not been amended to eliminate the personal exemption for federal tax years beginning on or after January 1, 2018.
NOTE: The purpose of this bill is to update the meaning of federal adjusted gross income and certain other terms used in the West Virginia Personal Income Tax Act; and specify effective dates.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.