H. B. 2806
(By Delegates Claypole, Davis,
Beach and Buchanan)
[Introduced March 28, 1997; referred to the
Committee on Finance.]
A BILL to amend article twenty-one, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirty-one, relating to personal income tax; and requiring
a nonresident reciprocal income tax.
Be it enacted by the Legislature of West Virginia:
That article twenty-one, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirty-one, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-31. Nonresident reciprocal income tax.
(a) As used in this section, the following phrases have the
meanings ascribed to them:
"Nonresident taxpayer" means a natural person employed in this state who resides in a bordering state;
"Bordering state" means a state with any border contiguous
to West Virginia, that authorizes income taxation of West
Virginia residents employed in the state.
(b) In addition to all other taxes required by this chapter,
there shall be levied on the income of a nonresident taxpayer a
reciprocal income tax at a rate equal to any income tax imposed
on any West Virginia resident that is employed in the state in
which the nonresident taxpayer resides.
(c) The tax is applicable to earned income received
beginning the first day of January, one thousand nine hundred
ninety-eight.
(d) All funds that are collected from this nonresident
reciprocal wage tax shall be allocated to the taxing body.
NOTE: The purpose of this bill is to require a nonresident
reciprocal income tax on taxpayers who are employed in this state
but reside in a bordering state that allows income taxation of
West Virginia residents.
This section is new; therefore, strike-throughs and
underscoring have been omitted.