H. B. 4679


(By Mr. Speaker, Mr. Kiss, and Delegate Trump)

[By Request of the Executive]

[Introduced February 25, 2000; referred to the

Committee on Finance.]
A BILL to amend and reenact section twelve-a, article twenty-one, chapter eleven; and section seven, article thirty, chapter eighteen of the code of West Virginia, one thousand nine hundred and thirty-one, all relating to the modification reducing federal adjusted gross income for payments into tuition and college savings plans administered under the prepaid tuition trust fund, for determining West Virginia adjusted gross income for purposes of the West Virginia adjusted gross income for purposes of the West Virginia personal income tax; authorizing a modification reducing federal adjusted gross income for any payment made under a prepaid tuition contract or other college savings plan administered as part of the prepaid tuition trust fund, to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made; providing for availability of the said modification regardless of the type or return form filed; specifying that the taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years, beginning in the taxable year in which the payment was made; and specifying that a purchaser of a prepaid tuition contract or other college savings plan administered as part of the prepaid tuition contract or other college savings plan administered as part of the prepaid tuition trust fund under the provisions of article thirty, chapter thirty of the code of West Virginia, one thousand nine hundred thirty-one, as amended is eligible for the said reducing modification.

Be it enacted by the Legislature of West Virginia:
That section twelve-a, article twenty-one, chapter eleven; and section seven, article thirty, chapter eighteen of the code of West Virginia, one thousand nine hundred and thirty-one, as amended, be amended and reenacted, all to read as follows:
CHAPTER 11 TAXATION.

ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12a. Additional modification reducing federal adjusted gross income.

In addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection (c), section twelve of this article, any payment made under a prepaid tuition contract or other college savings plan administered as part of the prepaid tuition trust fund as provided under section seven, article thirty, chapter eighteen of this code, is also an authorized modification reducing federal adjusted gross income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years, beginning in the taxable year in which the payment was made.
CHAPTER 18 EDUCATION.

 ARTICLE 30. WEST VIRGINIA PREPAID TUITION TRUST ACT.
§18-30-7. Income tax deduction for purchasers.
As provided in section twelve-a, article twenty-one, chapter eleven of this code, a purchaser of a prepaid tuition contract or other college savings plan administered as part of the prepaid tuition trust fund, under the provisions of this article, is eligible for a tax deduction.

NOTE: The purpose of this bill is to clarify the reducing modification from federal adjusted gross income for West Virginia Personal Income Tax for purposes of payments into the West Virginia Prepaid Tuition Trust Fund.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.