WEST virginia legislature
2020 regular session
Introduced
Senate Bill 170
By Senator Blair
[Introduced January 9, 2020;
referred
to the Committee on Finance]
A BILL to amend and reenact §11-21-20 of the Code of West Virginia, 1931, as amended, relating to personal income tax; alleviating double taxation on foreign income at the state level; and sunsetting the credit for income tax paid on foreign income in 2069.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-20. Credit for income tax of another state and foreign country.
(a) General. — A
resident shall be is allowed a credit against the tax otherwise
due under this article for any income tax imposed for the taxable year by
another state of the United States, or by the District of Columbia, or
by a foreign country upon income both derived therefrom and subject to tax
under this article.
(b) Limitations. —
(1) The credit under this section shall may not exceed the
percentage of the tax otherwise due under this article determined by dividing
the portion of the taxpayer’s West Virginia income subject to taxation by such
the other jurisdiction by the total amount of the taxpayer’s West
Virginia income.
(2) The credit under this
section shall does not reduce the tax otherwise due under this
article to an amount less than would have been due if the income subject to taxation
by such the other jurisdiction were excluded from the taxpayer’s
West Virginia income.
(c) Exception. — No
credit shall be is allowed under this section for a tax of a
jurisdiction which allows residents of this state a credit against the taxes
imposed by such the other jurisdiction for the tax under this
article, if such the other credit is substantially similar to the
credit granted by section forty §11-21-40 of this code.
(d) Definition. — For purposes of this section, “West Virginia income” means:
(1) The West Virginia adjusted gross income of an individual; or
(2) The amount of the
income of an estate or trust, determined as if the estate or trust were an
individual computing his or her West Virginia adjusted gross income
under section twelve §11-21-12 of this code.
(e) Sunset provision. — The credit allowed against the tax otherwise due under this article for any income tax imposed for the taxable year by a foreign country upon income both derived therefrom and subject to tax under this article is effective from the amendment and reenactment of this section during the 2020 regular session of the Legislature through July 1, 2069.
NOTE: The purpose of this bill is to alleviate double taxation on foreign income at the state level. The bill sunsets the credit for income tax paid on foreign income in 2069.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.