H. B. 2234
(By Delegates Walters, Webb, Henderson,
Harrison and Capito)
[Introduced February 26, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact section one, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to further amend
said article by adding thereto two new sections, designated
sections four-g and four-h, all relating to legislative
findings; providing for a five percent tax reduction to all
personal income tax rates.
Be it enacted by the Legislature of West Virginia:
That section one, article twenty-one, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that said article be
further amended by adding thereto two new sections, designated
sections four-g and four-h, 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
(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, one thousand nine hundred ninety-seven.
§11-21-4h. Rate of tax -- Taxable years beginning on or after
January 1, 1997.
(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 $25,000over $10,000
Over $25,000 but not$855.00 plus 4.275% of excess
over $40,000over $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
(b) Rate of tax on married individuals filing separate
-- 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
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 $12,500excess 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, one thousand nine
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
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.