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Introduced Version House Bill 2234 History

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hb2234 intr
H. B. 2234


(By Delegate Walters)
[Introduced February 11, 2005; referred to the
Committee on Finance.]




A BILL to amend and reenact §11-21-1 of the code of West Virginia, 1931, as amended; and to further amend said article by adding thereto two new sections, designated §11-21-4g and §11-21-4h, all relating to legislat ive findings; providing for a five percent tax reduction to all personal income tax rates.

Be it enacted by the Legislature of West Virginia:
That §11-21-1
of the code of West Virginia, 1931, as amended, be amended and reenacted; and that said article be further amended by adding thereto two new sections, designated §11-21-4g and §11-21-4h, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.

PART I. GENERAL.

§11-21-1. Legislative findings.

(a) The Legislature hereby finds and declares that the adoption by this state for its personal income tax purposes of the provisions of the laws of the United States relating to the determination of income for federal income tax purposes will: (1) Simplify preparation of state income tax returns by taxpayers; (2) improve enforcement of the state income tax through better use of information obtained from federal income tax audits; and (3) aid interpretation of the state tax law through increased use of federal judicial and administrative determinations and precedents.
(b) The Legislature further finds and declares that tax policy is a legitimate instrument for state government to utilize in efforts to stimulate small business and that too often the tax policies in force have had an opposite effect.
(c) The Legislature further recognizes that the level of poverty in this state is among the highest in the country while per capita income is among the lowest and that reducing the personal income tax will serve to reverse these troubling statistical trends.
(d) The Legislature further finds and declares that in order to provide tax relief to small businesses and individuals in this state that any reduction in income taxes must be accompanied with a commensurate reduction in the state budget.
(e) The Legislature further finds and declares that an across the board income tax cut of five percent would significantly stimulate the growth of small business, help toward the creation of jobs and render relief to those citizens of this state who are in need of financial relief.
The Legislature does, therefore, declare that this article be construed so as to accomplish the foregoing purposes.
§11-21-4g. Five percent reduction in all income tax rates.

There shall be a five percent reduction in all personal income tax rates for taxable years ending on and after the first day of January, two thousand five.
§11-21-4h. Rate of tax -- Taxable years beginning on or after
January 1, 2005.

(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 $10,0002.85% of the taxable income

Over $10,000 but not
$285.00 plus 3.8% of excess

over $25,000
over $10,000


Over $25,000 but not$855.00 plus 4.275% of excess
over $40,000
over $25,000


Over $40,000 but not$1,496.25 plus 5.7% of excess
over $60,000over $40,000

Over $60,000$2,636.25 plus 6.175% of excess
over $60,000

(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 $5,0002.85% of the taxable income

Over $5,000 but not$142.50 plus 3.8% of
over $12,500
excess over $10,000


Over $12,500 but not$427.50 plus 4.275% of
over $20,000excess over $12,500

Over $20,000 but not$748.13 plus 5.7% of
over $30,000excess over $20,000

Over $30,000$1,318.13 plus 6.175% of
excess over $30,000

(c) Applicability of this section. -- The provisions of this section shall be applied to determine the rate of tax imposed by this article for all taxable periods or portions thereof beginning after the first day of January, two thousand five.

NOTE: The purpose of this bill is to provide that all state income tax taxpayers receive a reduction of five percent across the board in their income tax rates. It includes legislative findings that support these tax rate reductions and call for commensurate reduction on the state budget to accompany any such tax reduction.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§§11-21-4g and 4h are new; therefore, strike-throughs and underscoring have been omitted.
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