WEST virginia legislature
2016 regular session
Introduced
Senate Bill 86
By Senator Yost
[Introduced January 13,
2016;
Referred to the Committee on Pensions; and then to the Committee on Finance.]
A BILL to amend and reenact §11-21-12d of the Code of West Virginia, 1931, as amended, relating to continuing personal income tax adjustment to 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.
§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 is
effective for taxable years beginning on and after January 1, 2008:
Provided, however, That for the taxable year 2007, the tax adjustment shall
be is effective and shall apply applies retroactively:
Provided further, That the adjustment terminates for the tax years on and
after January 1, 2015 2019. This modification is available
regardless of the type of return form filed.
NOTE: The purpose of this bill is to continue 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.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.