H. B. 2832
(By Delegates H. White, Staton, Wright and
Dempsey)
[Introduced March 28, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact section eight, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to providing
a personal income tax credit for persons earning low incomes
for the payment of liability insurance premiums.
Be it enacted by the Legislature of West Virginia:
That section eight, article twenty-one, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-8. Credits against tax.
(a) Business and occupation tax credit. -- A credit shall
be allowed against the tax imposed by section three of this
article equal to the amount of the liability of the taxpayer for
the taxable year for any tax imposed under article thirteen,
chapter eleven of this code: Provided, That the amount of such
the business and occupation tax credit shall may not exceed the portion of the tax imposed by this article which is attributable
to the West Virginia taxable income derived by the taxpayer for
the taxable year from the business or occupation with respect to
which said the tax under article thirteen was imposed. In case
the West Virginia taxable income of a taxpayer includes income
from a partnership, estate, trust or a corporation electing to be
taxed under subchapter S of the Internal Revenue Code of 1954, as
amended, a part of any tax liability of the partnership, estate,
trust or corporation under said article thirteen shall be allowed
to the taxpayer, in computing the credit provided for by this
section, in an amount proportionate to the income of such the
partnership, estate, trust or corporation, which is included in
the taxpayer's West Virginia taxable income.
For purposes of this section, the tax imposed under article
thirteen, chapter eleven of this code shall be the amount of the
liability of the taxpayer for such tax under said article
thirteen computed without reduction for the tax credit for
industrial expansion or revitalization allowed for such the year.
(b) Severance tax credit. -- On and after the first day of
July, one thousand nine hundred eighty-seven, a credit shall be
allowed against the tax imposed by section three of this article
equal to the amount of the liability of the taxpayer for the
taxable year for any tax imposed under article thirteen-a,
chapter eleven of this code: Provided, That the amount of such the severance tax credit shall may not exceed the portion of the
tax imposed by this article which is attributable to the West
Virginia taxable income derived by the taxpayer for the taxable
year from the activities with respect to which said the tax under
article thirteen-a was imposed. In case the West Virginia
taxable income of a taxpayer includes income from a partnership,
estate, trust or a corporation electing to be taxed under
subchapter S of the Internal Revenue Code of 1954, as amended, a
part of any tax liability of the partnership, estate, trust or
corporation under said article thirteen-a shall be allowed to the
taxpayer, in computing the credit provided for by this section,
in an amount proportionate to the income of such the partnership,
estate, trust or corporation, which is included in the taxpayer's
West Virginia taxable income.
(c) Casualty insurance. -- For persons whose adjusted gross
income is not over twenty-five thousand dollars, or for married
individuals filing separate returns whose income is not over
twelve-thousand five hundred dollars, a credit shall be allowed
against the tax imposed by section three of this article equal to
the amount of any payments by the taxpayer in the taxable year
for the payment of premiums including any portion thereof, or any
additional sums required to be paid, that are dedicated to the
payment of any premium tax as provided under chapter
thirty-three of this code, for liability insurance coverage protecting a taxpayer against claims for property damage or
injuries or death to a person or persons.
(c) (d) Expiration of credit. -- The credit authorized in
subsection (b) of this section shall expire and not be authorized
or allowed for any taxable year beginning on or after the first
day of October, one thousand nine hundred ninety.
NOTE: The purpose of this bill is to provide for a personal
income tax credit for persons earning low incomes for the payment
of insurance premiums for liability insurance.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.