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Introduced Version House Bill 4561 History

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Key: Green = existing Code. Red = new code to be enacted
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H. B. 4561

 

         (By Delegates McCuskey, Ferns, Pasdon and Lane)

         [Introduced February 17, 2014; referred to the

         Committee on Finance.]

 

 

 

 

A BILL to amend and reenact §11-21-4e of the Code of West Virginia, 1931, as amended; to amend said code by adding thereto a new section, designated §11-21-97; and to amend said code by adding thereto a new section, designated §11-24-44, all relating to the rate of tax on personal income, including bonuses earned and increases on salary; and providing tax credits.

Be it enacted by the Legislature of West Virginia:

    That §11-21-4e of the Code of West Virginia, 1931, as amended, be amended and reenacted; that said code be amended by adding thereto a new section, designated §11-21-97; and that said code be amended by adding thereto a new section, designated §11-24-44, all to read as follows:

ARTICLE 21. PERSONAL INCOME TAX.

§11-21-4e. Rate of tax -- Taxable years beginning on or after January 1, 1987.

    (a) Rate of tax on individuals, except married individuals filing separate returns, individuals filing joint returns, heads of households, estates and trusts. -- The tax imposed by section three of this article on the West Virginia taxable income of every individual, except married individuals filing separate returns; every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; every husband and wife who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust shall be determined in accordance with the following table:

    If the West Virginia

    taxable income is:          The tax is:


    Not over $10,000            3% of the taxable income


    Over $l0,000 but not        $300.00 plus 4% of excess

        over $25,000                 over $10,000


    Over $25,000 but not        $900.00 plus 4.5% of excess

        over $40,000                 over $25,000


    Over $40,000 but not        $1,575.00 plus 6% of excess

        over $60,000                 over $40,000


    Over $60,000                $2,775.00 plus 6.5% of excess

                                 over $60,000


    (b) Rate of tax on married individuals filing separate returns. -- In the case of husband and wife filing separate returns under this article for the taxable year, the tax imposed by section three of this article on the West Virginia taxable income of each spouse shall be determined in accordance with the following table:

    If the West Virginia

    taxable income is:              The tax is:


    Not over $5,000                 3% of the taxable income


    Over $5,000 but not             $l50.00 plus 4% of excess

        over $l2,500                     over $5,000


    Over $l2,500 but not            $450.00 plus 4.5% of

        over $20,000                     excess over $l2,500


    Over $20,000 but not            $787.50 plus 6% of excess

        over $30,000                     over $20,000


    Over $30,000                    $l,387.50 plus 6.5% of

                                     excess over $30,000


    (c) Applicability of this section. -- The provisions of this section, as amended by this act, shall be applicable in determining the rate of tax imposed by this article for all taxable years beginning after December 31, 1986, and shall be in lieu of the rates of tax specified in section four-d of this article.

    (d) For all taxation of personal income imposed by this article for all taxable years beginning after December 31, 2014, the rates of tax on income derived from bonus payments which are not a portion of the regular salary of the taxpayer shall be one-half the amount imposed on all other income: Provided, That the bonus income is not derived from a commission on sales; however, this condition is not intended to remove all commission-based employees from the provisions of this article.

§11-21-97. Rate of tax -- Tax on incremental increases in income.

    Beginning with the tax year beginning after December 31, 2014, all individuals paying income tax are entitled to a refund in the amount equal to the amount of tax paid on any amount of salary above that earned in the previous year for which they were subject to income tax in the State of West Virginia.

ARTICLE 24. CORPORATION NET INCOME TAX.

§11-24-44. Salary increase credit.

    Beginning with the tax year beginning after December 31, 2015, any corporation which is an employer in the State of West Virginia who pays an increase in the salary of any of its employees over the amount paid in the prior tax year, is entitled to a credit equal to the amount of income tax paid by that employee on the increased salary.


    NOTE: The purpose of this bill is to add new language to West Virginia Code relating to tax rates on bonuses earned, and increases on salary and providing credits for these.


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


    §11-21-97 and §11-24-44 are new; therefore, they have been completely underscored.

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