Senate Bill No. 283
(By Senator Sprouse)
____________
[Introduced March 11, 1997; referred to the Committee
on Finance.]
____________
A BILL to amend and reenact section sixteen, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to linking the
resident individual personal income tax exemptions to the
consumer price index beginning the first day of January, one
thousand nine hundred ninety-seven.
Be it enacted by the Legislature of West Virginia:
That section sixteen, 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.
§11-21-16. West Virginia personal exemptions of resident individual.
(a) General. -- For any tax imposed under the provisions of this article with respect to any taxable year prior to the first
day of January, one thousand nine hundred eighty-three, a
resident individual shall be allowed a West Virginia exemption of
six hundred dollars for each exemption for which he is entitled
to a deduction for the taxable year for federal income tax
purposes. With respect to any taxable year beginning on or after
the first day of January, one thousand nine hundred eighty-three,
and prior to the first day of January, one thousand nine hundred
eighty-four, said the exemption shall be seven hundred dollars;
with respect to any taxable year beginning on or after the first
day of January, one thousand nine hundred eighty-four, said the
exemption shall be eight hundred dollars; and with respect to any
taxable year beginning on or after the first day of January, one
thousand nine hundred eighty-seven, said the exemption shall be
two thousand dollars.
(b) Husband and wife. -- If the West Virginia income taxes
of a husband and wife are separately determined but their federal
income tax is determined on a joint return, each of them shall be
separately entitled, with respect to any taxable year prior to
the first day of January, one thousand nine hundred eighty-three,
to a West Virginia exemption of six hundred dollars for each
federal exemption to which he or she would be separately entitled
for the taxable year if their federal income taxes had been determined on separate returns. With respect to any taxable year
beginning on or after the first day of January, one thousand nine
hundred eighty-three, and prior to the first day of January, one
thousand nine hundred eighty-four, said the exemption shall be
seven hundred dollars; with respect to any taxable year beginning
on or after the first day of January, one thousand nine hundred
eighty-four, said the exemption shall be eight hundred dollars;
and with respect to any taxable year beginning on or after the
first day of January, one thousand nine hundred eighty-seven,
said the exemption shall be two thousand dollars.
(c) Surviving spouse. -- For taxable years beginning after
the thirty-first day of December, one thousand nine hundred
eighty-six, a surviving spouse shall be allowed one additional
exemption of two thousand dollars for the two taxable years
beginning after the year of death of the deceased spouse.
For purposes of this section and section twelve of this
article, a surviving spouse means a taxpayer whose spouse died
during the taxable year prior to the taxable year for which the
annual return is being filed and who has not remarried at any
time before the end of the taxable year for which the annual
return is being filed.
(d) Certain dependents. -- Notwithstanding any provisions in
this section, for taxable years beginning after the thirty-first day of December, one thousand nine hundred eight-six, a resident
individual whose exemption amount for federal tax purposes is
zero by virtue of section 151(d)(2) 26 U.S.C. § 152(d)(2) of the
Internal Revenue Code of 1986, as amended, shall be allowed a
single West Virginia exemption in the amount of five hundred
dollars.
(e) For any tax year beginning on or after the first day of
January, one thousand nine hundred ninety-seven, the exemptions
allowed by this section shall be tied to adjusted each year to reflect
any increasabe in the consumer price index as determined by the
United States department of labor.
NOTE: The purpose of this bill is to tie the personal
income tax exemptions of resident individuals to the Consumer
Price Index effective January 1, 1997.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.