Senate Bill No. 500
(By Senators Bowman, Unger, Plymale and Stollings)
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[Introduced February 8, 2010; 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 additional
modifications reducing federal adjusted gross income for state
personal income tax; and providing that the reduction for
certain retirees is extended until January 1, 2015.
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 I. GENERAL.
§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 (c), 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 2007, the tax adjustment
shall be effective and shall apply retroactively:
Provided
further, That the adjustment shall terminate for the tax years on
or after January 1,
two thousand twelve 2015. This modification is
available regardless of the type of return form filed.
NOTE: The purpose of this bill is to extend until January 1,
2015, the reduction for certain retirees as additional
modifications reducing federal adjusted gross income for state
personal income tax. Currently, the reduction modification expires
on January 1, 2012.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.