Senate Bill No. 60
(By Senators Bowman and Yost)
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[Introduced February 11, 2009; referred to the Committee on
Finance.]
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A BILL to amend and reenact §11-21-12d of the Code of West
Virginia, 1931, as amended, relating to providing a personal
income tax adjustment to the gross income of certain retirees
receiving pensions from defined pension plans that terminated
and are being paid a reduced maximum benefit guarantee.
Be it enacted by the Legislature of West Virginia:
That §11-21-12d of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART II. RESIDENTS.
§11-21-12d. Additional modification reducing federal adjusted
gross income.
In addition to amounts authorized to be subtracted from
federal adjusted gross income pursuant to subsection ©, section twelve of this article, 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 shall be 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 shall
terminate for the tax years on January 1,
two thousand twelve 2014.
This modification is available regardless of the type of return
form filed.
NOTE: The purpose of this bill to extend the termination of a
personal income tax adjustment to the gross income of certain
retirees receiving pensions from defined pension plans that
terminated and are being paid a reduced maximum benefit guarantee
from 2007 to 2014.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.