Senate Bill No. 7
(By Senators Bowman and Yost)
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[Introduced February 11, 2009; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-78, relating
to specifying that gambling and lottery winnings are taxable;
specifying that gambling and lottery losses are tax
deductible; and requiring the taxpayer to keep detailed
records showing losses.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-78, to read as
follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-78. Gambling and lottery winnings.
Gambling and lottery winnings are taxable.
These consist of
gains arising from gambling and lotteries. In calculating gains, the taxpayer may deduct gambling and lottery losses, but may not
deduct the costs and expenses incurred in connection with the
gambling and lottery activity.
In addition to the other record
keeping requirements pursuant to this chapter, the taxpayer shall
maintain detailed records substantiating losses. The taxpayer has
the burden of proving losses.
The Tax Commissioner may prescribe all necessary forms and
propose rules for legislative approval in accordance with the
provisions of article three, chapter twenty-nine-a of this code as
are necessary to carry out and enforce the provisions of this
section.
NOTE: The purpose of this bill is to specify that gambling and
lottery winnings are taxable and that gambling and lottery losses
are tax deductible. The bill also requires the taxpayer to keep
detailed records showing losses.
This section is new; therefore, strike-throughs and
underscoring have been omitted.