H. B. 2832


(By Delegates H. White, Staton, Wright and
Dempsey)


[Introduced March 28, 1997; referred to the

Committee on Finance.]



A BILL to amend and reenact section eight, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to providing a personal income tax credit for persons earning low incomes for the payment of liability insurance premiums.

Be it enacted by the Legislature of West Virginia:
That section eight, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.

§11-21-8. Credits against tax.

(a) Business and occupation tax credit. -- A credit shall be allowed against the tax imposed by section three of this article equal to the amount of the liability of the taxpayer for the taxable year for any tax imposed under article thirteen, chapter eleven of this code: Provided, That the amount of such the business and occupation tax credit shall may not exceed the portion of the tax imposed by this article which is attributable to the West Virginia taxable income derived by the taxpayer for the taxable year from the business or occupation with respect to which said the tax under article thirteen was imposed. In case the West Virginia taxable income of a taxpayer includes income from a partnership, estate, trust or a corporation electing to be taxed under subchapter S of the Internal Revenue Code of 1954, as amended, a part of any tax liability of the partnership, estate, trust or corporation under said article thirteen shall be allowed to the taxpayer, in computing the credit provided for by this section, in an amount proportionate to the income of such the partnership, estate, trust or corporation, which is included in the taxpayer's West Virginia taxable income.
For purposes of this section, the tax imposed under article thirteen, chapter eleven of this code shall be the amount of the liability of the taxpayer for such tax under said article thirteen computed without reduction for the tax credit for industrial expansion or revitalization allowed for such the year.
(b) Severance tax credit. -- On and after the first day of July, one thousand nine hundred eighty-seven, a credit shall be allowed against the tax imposed by section three of this article equal to the amount of the liability of the taxpayer for the taxable year for any tax imposed under article thirteen-a, chapter eleven of this code: Provided, That the amount of such the severance tax credit shall may not exceed the portion of the tax imposed by this article which is attributable to the West Virginia taxable income derived by the taxpayer for the taxable year from the activities with respect to which said the tax under article thirteen-a was imposed. In case the West Virginia taxable income of a taxpayer includes income from a partnership, estate, trust or a corporation electing to be taxed under subchapter S of the Internal Revenue Code of 1954, as amended, a part of any tax liability of the partnership, estate, trust or corporation under said article thirteen-a shall be allowed to the taxpayer, in computing the credit provided for by this section, in an amount proportionate to the income of such the partnership, estate, trust or corporation, which is included in the taxpayer's West Virginia taxable income.
(c) Casualty insurance. -- For persons whose adjusted gross income is not over twenty-five thousand dollars, or for married individuals filing separate returns whose income is not over twelve-thousand five hundred dollars, a credit shall be allowed against the tax imposed by section three of this article equal to the amount of any payments by the taxpayer in the taxable year for the payment of premiums including any portion thereof, or any additional sums required to be paid, that are dedicated to the payment of any premium tax as provided under chapter thirty-three of this code, for liability insurance coverage protecting a taxpayer against claims for property damage or injuries or death to a person or persons.
(c) (d) Expiration of credit. -- The credit authorized in subsection (b) of this section shall expire and not be authorized or allowed for any taxable year beginning on or after the first day of October, one thousand nine hundred ninety.




NOTE: The purpose of this bill is to provide for a personal income tax credit for persons earning low incomes for the payment of insurance premiums for liability insurance.

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