ENGROSSED
Senate Bill No. 541
(By Senators Bowman and Kessler)
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[Introduced February 1, 2008; 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 retroactively applying
and extending the 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.
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 two million dollars 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 two million dollars for the next year. This
tax adjustment shall be effective for taxable years beginning on
and after the first day of January, two thousand
one eight:
Provided, however,
That for the taxable year two thousand seven,
the tax adjustment shall be effective and shall apply
retroactively: Provided further,
That the adjustment shall
terminate for the tax years on or after the first day of January,
two thousand seven twelve. This modification is available
regardless of the type of return form filed.