H. B. 4070
(By Mr. Speaker, Mr. Kiss, and Delegate Ashley)
[By Request of the Executive]
[Introduced Janaury 23, 1998; 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 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 ninety-six, but prior to the first day of January, one
thousand nine hundred
ninety-seven ninety-eight, shall be given
effect in determining the taxes imposed by this article 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-
seven ninety-eight, shall be given any effect.
(b)
Medical savings accounts. -- The term "taxable trust"
does not include a medical savings account established pursuant
to section twenty, article fifteen, chapter thirty-three of this
code or section fifteen, article sixteen of said chapter.
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-seven
ninety-eight shall be retroactive 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-six ninety-seven, 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 meanings of
terms used but not defined in the West Virginia Personal Income
Tax Act by bringing them into conformity with their meanings for
federal income tax purposes.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language
that would be added.
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