H. B. 4422
(By Delegates Flanigan and Wright)
[Introduced February 13, 1998; referred to the
Committee on Finance.]
A BILL to amend and reenact section sixteen, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to raising the
personal income tax exemption from two thousand dollars to
two thousand six hundred fifty dollars for any taxable year
beginning on or after the first day of January, one thousand
nine hundred ninety-eight.
Be it enacted by the Legislature of West Virginia:
That section sixteen, 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.
PART II. RESIDENTS.
§11-21-16. West Virginia personal exemptions of resident
individual.
(a)
General. -- For any tax imposed under the provisions of
this article with respect to any taxable year prior to the first
day of January, one thousand nine hundred eighty-three, a
resident individual shall be allowed a West Virginia exemption of
six hundred dollars for each exemption for which he is entitled
to a deduction for the taxable year for federal income tax
purposes. With respect to any taxable year beginning on or after
the first day of January, one thousand nine hundred eighty-three,
and prior to the first day of January, one thousand nine hundred
eighty-four, said exemption shall be seven hundred dollars; with
respect to any taxable year beginning on or after the first day
of January, one thousand nine hundred eighty-four, said exemption
shall be eight hundred dollars;
and with respect to any taxable
year beginning on or after the first day of January, one thousand
nine hundred eighty-seven, said exemption shall be two thousand
dollars;
and with respect to any taxable year beginning on or
after the first day of January, one thousand nine hundred ninety- eight, said exemption shall be two thousand six hundred fifty
dollars.
(b)
Husband and wife. -- If the West Virginia income taxes
of a husband and wife are separately determined but their federal
income tax is determined on a joint return, each of them shall be
separately entitled, with respect to any taxable year prior to
the first day of January, one thousand nine hundred eighty-three, to a West Virginia exemption of six hundred dollars for each
federal exemption to which he would be separately entitled for
the taxable year if their federal income taxes had been
determined on separate returns. With respect to any taxable year
beginning on or after the first day of January, one thousand nine
hundred eighty-three, and prior to the first day of January, one
thousand nine hundred eighty-four, said exemption shall be seven
hundred dollars; with respect to any taxable year beginning on or
after the first day of January, one thousand nine hundred eighty- four, said exemption shall be eight hundred dollars;
and with
respect to any taxable year beginning on or after the first day
of January, one thousand nine hundred eighty-seven, said
exemption shall be two thousand dollars;
and with respect to any
taxable year beginning on or after the first day of January, one
thousand nine hundred ninety-eight, said exemption shall be two
thousand six hundred fifty dollars.
(c)
Surviving spouse. -- For taxable years beginning after
the thirty-first day of December, one thousand nine hundred
eighty-six ninety-seven, a surviving spouse shall be allowed one
additional exemption of two thousand
six hundred fifty dollars
for the two taxable years beginning after the year of death of
the deceased spouse.
For purposes of this section and section twelve of this
article, a surviving spouse means a taxpayer whose spouse died during the taxable year prior to the taxable year for which the
annual return is being filed and who has not remarried at any
time before the end of the taxable year for which the annual
return is being filed.
(d)
Certain dependents. -- Notwithstanding any provisions in
this section, for taxable years beginning after the thirty-first
day of December, one thousand nine hundred eighty-six, a resident
individual whose exemption amount for federal tax purposes is
zero by virtue of section 151(d)(2) 26 U.S.C. § 152(d)(2) of the
Internal Revenue Code of 1986, shall be allowed a single West
Virginia exemption in the amount of five hundred dollars.
NOTE: The purpose of this bill is to raise the West
Virginia personal income tax exemption from two thousand dollars
to two thousand six hundred fifty dollars for any taxable year
beginning on or after January 1, 1998.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.