HOUSE CONCURRENT RESOLUTION 115

(By Mr. Speaker, Mr. Armstead, Ambler, Anderson, Bates, Boggs, Butler, Cooper, Cowles, Dean, Ellington, Espinosa, Frich, Gearheart, Harshbarger, Hartman, Householder, Kelly, Lane, Maynard, McGeehan, C. Miller, Moye, Nelson, Paynter, Pethtel, Shott, Sobonya, Westfall, Wilson, and Zatezalo)

[Originating in the Committee on Finance; Reported on March 10, 2018]

Requesting the Joint Committee on Government and Finance study the issue of retirement security and the state taxation of Social Security benefits.

Whereas, 460,494 West Virginians receive Social Security benefits, with the average annual benefit approximately $15,672; and,

Whereas, The majority of West Virginians (57 percent) rely on Social Security for 50 percent or more of their household income, while nearly one-third (30 percent) of state residents rely on Social Security for 90 percent or more of their household income; and,

Whereas, West Virginia is one of only four states – along with Vermont, North Dakota and New Mexico – that tax retiree Social Security benefits the same way they are taxed on the federal level; and,

Whereas, When a state’s tax system is tied to the federal income tax, as is often the case, any additional federal taxation of Social Security benefits automatically translates into an additional state tax burden for individuals as well; and,

            Whereas, Financial security in retirement requires a strong Social Security system, protection of pension promises, effective retirement plans and savings vehicles, and freedom from employment discrimination; and,

            Whereas, Measures to increase individuals’ retirement savings should be encouraged and such savings should be in addition to, not instead of, the guaranteed benefits provided by Social Security; now therefore, be it.

Resolved by the Legislature of West Virginia:

That the Joint Committee on Government and Finance is requested to study the issue of retirement security and the state taxation of Social Security benefits; and, be it

Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2019, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.