Senate Bill No. 91
(By Senators Burdette, Mr. President, and Boley,
By Request of the Executive)
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[Introduced February 19, 1993; referred to the Committee
on Finance.]
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A BILL to amend and reenact section four-f, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to further amend
said article by adding thereto a new section, designated
section four-z, all relating generally to the West Virginia
personal income tax; adding a new tax bracket imposing tax
of seven and one-half percent of West Virginia taxable
income in excess of one hundred thousand dollars for
estates, trusts and individuals, except married individuals
filing separate returns, for whom is added a new tax bracket
imposing tax of seven and one-half percent of West Virginia
taxable income in excess of fifty thousand dollars; and
making such tax rate changes effective for taxable years
beginning after the thirty-first day of December, one
thousand nine hundred ninety-two.
Be it enacted by the Legislature of West Virginia:
That section four-f, article twenty-one, chapter eleven ofthe code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted; and that said article be
further amended by adding thereto a new section, designated
section four-z, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-4f. Rate of tax -- Taxable years beginning after December
31, 1992.
(a)
Rate of tax on individuals (except married individuals
filing separate returns), individuals filing joint returns, heads
of households, estates and trusts.
-- The tax imposed by section
three of this article on the West Virginia taxable income of
every individual (except married individuals filing separate
returns); every individual who is a head of a household in the
determination of his or her federal income tax for the taxable
year; every husband and wife who file a joint return under this
article; every individual who is entitled to file his or her
federal income tax return for the taxable year as a surviving
spouse; and every estate and trust shall be determined in
accordance with the following table:
If the West Virginia
taxable income is:The tax is:
Not over $10,0003% of the taxable income
Over $l0,000 but not$300.00 plus 4% of excess
over $25,000over $10,000
Over $25,000 but not$900.00 plus 4.5% of excess
over $40,000over $25,000
Over $40,000 but not$1,575.00 plus 6% of excess
over $60,000over $40,000
Over $60,000 but not $2,775.00 plus 6.5% of excess
over $100,000over $60,000
Over $100,000$5,375.00 plus 7.5% of excess
over $100,000
(b)
Rate of tax on married individuals filing separate
returns.
-- In the case of husband and wife filing separate
returns under this article for the taxable year, the tax imposed
by section three of this article on the West Virginia taxable
income of each spouse shall be determined in accordance with the
following table:
If the West Virginia
taxable income is:The tax is:
Not over $5,0003% of the taxable income
Over $5,000 but not$l50.00 plus 4% of excess
over $l2,500over $5,000
Over $l2,500 but not$450.00 plus 4.5% of
over $20,000excess over $l2,500
Over $20,000 but not$787.50 plus 6% of excess
over $30,000over $20,000
Over $30,000 but not$1,387.50 plus 6.5%
over $50,000 of the excess
over $30,000
Over $50,000$2,687.50 plus 7.5% of
excess over $50,000
(c)
Applicability of this section.
-- The provisions of
this section, as amended by this act, shall be applicable in
determining the rate of tax imposed by this article for all
taxable years beginning after the thirty-first day of December,
one thousand nine hundred ninety-two, and shall be in lieu of the
rates of tax specified in section four-e of this article.
§11-21-4z. Effect of rate changes during taxable year.
(a) If any rate of tax imposed by this article changes to
become effective after the thirty-first day of December, of a
calendar year, and if the taxable year includes the effective
date of the change of rate (unless that date is the first day of
the taxable year) then: (1) Tentative taxes shall be computed by
applying the rate for the period before the effective date of the
change of rate, and the rate for the period on and after such
date, to the taxable income for the entire taxable year; and (2)
the tax for such taxable year shall be the sum of that proportion
of each tentative tax which the number of months in each period
bears to the number of months in the entire taxable year.
(b) For purposes of subsection (a):
(1) If the rate changes for taxable years "beginning after"
or "ending after" a certain date, the following day shall be
considered the effective date of the change; and
(2) If a rate changes for taxable years "beginning on or
after" a certain date, that date shall be considered the
effective date of the change of rate.
NOTE: The purpose of this bill is to impose a new marginal
tax rate of 7.5% on West Virginia taxable income in excess of
$50,000 for married individuals filing separate returns and
$100,000 for all other taxpayers subject to the personal income
tax.
Section 4f has been completely rewritten; therefore, strike-
throughs and underscoring have been omitted.
Section 4z is new; therefore, strike-throughs and
underscoring have been omitted.
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