H. B. 4011
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced January 14, 2004; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-21-9 of the code of West Virginia,
1931, 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 updating effective date.
Be it enacted by the Legislature of West Virginia:
That §11-21-9 of the code of West Virginia, 1931, 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 has 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 means the provisions of the Internal Revenue Code of 1986, as amended, and any other provisions of the laws of the United
States that relate to the determination of income for federal
income tax purposes. All amendments made to the laws of the United
States
on or after the
fifteenth day of March, two thousand two,
thirty-first day of May, two thousand three, but prior to the first
day of January, two thousand
three four, 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
the changes are retroactive or prospective, but no amendment to the
laws of the United States made on or after the first day of
January, two thousand
three four, 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 two thousand
three four are retroactive to the extent
allowable under federal income tax law. With respect to taxable
years that began prior to the
fifteenth first day of
March June,
two thousand
two three, the law in effect for each of those years
shall be fully preserved as to that year, except as provided in
this section.
(e) For purposes of the refundable credit allowed to a low
income senior citizen for property tax paid on his or her homestead
in this state, the term "laws of the United States" as used in
subsection (a) of this section means and includes the term "low
income" as defined in subsection (b), section twenty-one of this
article and as reflected in the poverty guidelines updated
periodically in the federal register by the U.S. Department of
Health and Human Services under the authority of 42 U.S.C. 9902(2).
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.