H. B. 2464
(By Mr. Speaker, Mr. Kiss, and Delegate Ashley)
[By Request of the Executive]
[Introduced March 10, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact section nine, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to updating
the meaning of certain terms used in the West Virginia
personal income tax act by bringing them into conformity
with their meanings for federal income tax purposes; and
specifying effective dates.
Be it enacted by the Legislature of West Virginia:
That section nine, 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.
§11-21-9. Meaning of terms.
(a) Any term used in this article shall have the same
meaning as when used in a comparable context in the laws of the
United States relating to income taxes, unless a different
meaning is clearly required. Any reference in this article to
the laws of the United States shall mean the provisions of the Internal Revenue Code of 1986, as amended, and
such any other
provisions of the laws of the United States as relate to the
determination of income for federal income tax purposes. All
amendments made to the laws of the United States
after the
thirty-first day of December, one thousand nine hundred ninety- five but prior to the first day of January,
one thousand nine
hundred ninety-six one thousand nine hundred ninety-seven, shall
be given effect in determining the taxes imposed by this article
for any taxable year beginning the first day of January, one
thousand nine hundred ninety-five or thereafter to the same
extent those changes are allowed for federal income tax purposes,
whether such changes are retroactive or prospective, but no
amendment to the laws of the United States made on or after the
first day of January,
one thousand nine hundred ninety-six one
thousand nine hundred ninety-seven, shall be given any effect.
The exception to the preceding rule is the change in federal
income tax law restoring subsection (l), Section 162 of the
Internal Revenue Code for taxable years beginning on or after the
first day of January, one thousand nine hundred ninety-four,
which shall be allowed under this article for taxable years
beginning on or after the first day of January, one thousand nine
hundred ninety-four.
(b)
Medical savings accounts. -- The term "taxable trust"
does not include a medical savings account established pursuant
to section twenty, article fifteen or section fifteen, article
sixteen, both of chapter thirty-three of this code. Employer
contributions to a medical savings account established pursuant to said sections, are not "wages" for purposes of withholding
under section seventy-one of this article.
(c)
Surtax. -- The term "surtax" means the twenty percent
additional tax imposed on taxable withdrawals from a medical
savings account under section twenty, article fifteen, chapter
thirty-three of this code, and the twenty percent additional tax
imposed on taxable withdrawals from a medical savings account
under section fifteen, article sixteen of said chapter, which are
collected by the tax commissioner as tax collected under this
article.
(d)
Effective date. -- The amendments to this section
enacted in the year
one thousand nine hundred ninety-six one
thousand nine hundred ninety-seven shall be retroactive
and shall
apply to taxable years beginning on or after the first day of
January, one thousand nine hundred ninety-five to the extent
allowable under federal income tax law. With respect to taxable
years that begin prior to the first day of January,
one thousand
nine hundred ninety-five one thousand nine hundred ninety-six,
the law in effect for each of those years shall be fully
preserved as to such year,
except as provided in this section.
NOTE: The purpose of this bill is to update the meaning of
certain terms used in the West Virginia Personal Income Tax Act
to bring them into conformity with their meaning for federal
income tax purposes. Numerous federal changes enacted in 1996
are retroactive to taxable years that began before January 1,
1996. This bill adopts those changes for West Virginia income
tax purposes to the same extent such changes are retroactive for
federal income tax purposes.
Strike-throughs indicate language that would be deleted from
current law. Underscoring indicates new language that would be added.
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