WEST virginia Legislature
2018 regular session
Introduced
Senate Bill 72
By Senators Weld 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 allowing an adjustment to gross income for calculating the personal income tax liability of certain retirees receiving pensions from defined benefit pension plans that have been terminated with a consequent reduced benefit; and reinstating the effective period of the allowed adjustment.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12d. Additional modification reducing federal adjusted gross income.
(a) In addition to amounts authorized to be subtracted
from federal adjusted gross income pursuant to subsection (c), section
twelve of this article §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 effective and shall apply retroactively: Provided further, That the
adjustment terminates for the tax years on and after January 1, 2015.
(b) This adjustment shall be effective for tax years beginning on January 1, 2018, and shall terminate for taxable years on and after January 1, 2022.
(c) This modification is available regardless of the type of return form filed.
NOTE: The purpose of this bill is to allow adjustment of gross income for calculating personal income liability for certain retirees entitled to reduced benefits related to a terminated defined benefit plan.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.