H. B. 2119
(By Delegate Azinger)
[Introduced February 9, 2005; referred to the
Committee on Veterans Affairs and Homeland Security then
A BILL to
amend and reenact §11-21-3
of the code of West Virginia,
1931, as amended,
relating to personal income tax; providing
tax exemption to veterans and their spouses locating in West
Virginia following the veterans' separation from service.
Be it enacted by the Legislature of West Virginia:
of the code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-3. Imposition of tax; additional, temporary surtax
imposed; effective and termination dates; minimum
tax; persons subject to tax.
(a) Imposition of tax.
(1) Primary tax. -- A tax determined in accordance with the
rates hereinafter set forth in this article is hereby imposed for each taxable year on the West Virginia taxable income of every
individual, estate and trust
: Provided, That a veteran of the
United States Armed Forces, honorably discharged, and the veteran's
current spouse are exempt from payment of this tax for a total of
five years if the veteran locates in West Virginia following
separation from military service, resides in the State during the
period of exemption, and presents an application to the State Tax
Division of the Department of Tax and Revenue along with a DD Form
214 and proof of a valid State driver's license or other
identification acceptable to the Tax Commissioner to verify State
residence. The veteran or spouse is eligible for the exemption in
any year within ten years following the date of separation shown on
the DD Form 214.
(2) Temporary surtax. -- In addition to the primary tax
imposed upon the persons, for the periods, on West Virginia taxable
income, and at the rates, as aforesaid, there is hereby imposed an
additional tax, a temporary surtax, of twelve percent of
determined primary tax liability for individuals and heads of
household with West Virginia taxable income in excess of ten
thousand dollars and for those filing a joint return with West
Virginia taxable income in excess of twenty thousand dollars; and
with such the primary tax and additional tax, the temporary surtax,
together with the minimum tax herein, to constitute the tax imposed
by this section and under this article.
(3) Minimum tax. -- In addition to the primary tax and the
temporary surtax imposed by this section, there is imposed a
minimum tax, which shall be the excess, if any, by which an amount
equal to twenty-five percent of any federal minimum tax or
alternative minimum tax for the taxable year exceeds the sum of the
primary tax and the temporary surtax imposed by this section for
the taxable year.
(4) Effective date. -- The additional tax, the temporary
surtax herein imposed, and the minimum tax herein imposed are
hereby made effective on and after the first day of April, one
thousand nine hundred eighty-three: Provided, That the temporary
surtax shall expire, be nullified and of no further force or effect
whatsoever after the thirtieth day of June, one thousand nine
hundred eighty-five. Section four-e of this article, applicable to
the effect of any rate changes during a taxable year shall be
construed to include and also be applicable to the surtax imposed
in this section or any change of surtax hereafter during a taxable
(b) Partners and partnerships. -- A partnership
as such shall
not be is not subject to tax under this article. Persons carrying
on business as partners shall be liable for tax under this article
only in their separate or individual capacities.
(c) Associations taxable as corporations. -- An association,
trust or other unincorporated organization which is taxable as a corporation for federal income tax purposes,
shall not be is not
subject to tax under this article.
(d) Exempt trusts and organizations. -- A trust or other
unincorporated organization which by reason of its purposes or
activities is exempt from federal income tax shall be exempt from
tax under this article (regardless of whether subject to federal
income tax on unrelated business taxable income).
(e) Cross references. -- For definitions of West Virginia
taxable income of:
(1) Resident individual, see section eleven.
(2) Resident estate or trust, see section eighteen.
(3) Nonresident individual, see section thirty-one.
(4) Nonresident estate or trust, see section thirty-eight.
NOTE: The purpose of this bill is to exempt from state income
tax, for five years, veterans and their spouses who locate in the
state following separation from military service.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would