H. B. 2716
(By Delegates Azinger and Modesitt)
[Introduced February 10, 1999; referred to the
Committee on Veterans' Affairs then Finance.]
A BILL to amend and reenact section three, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to personal
income tax; providing tax exemption to veterans and their
spouses locating in West Virginia following the veterans'
separation from service.
Be it enacted by the Legislature of West Virginia:
That section three, 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.
§11-21-3. Imposition of tax; additional, temporary surtax
imposed; effective and termination dates; minimum tax;
persons subject to tax; veterans exemption.
(a) Imposition of tax.
(1) Primary tax. -- A tax determined in accordance with the
rates hereinafter set forth in this article is hereby imposed for
each taxable year on the West Virginia taxable income of every
individual, estate and trust: Provided, That a veteran of the
United States armed forces, honorably discharged, and the
veteran's current spouse are exempt from payment of this tax for
a total of five years if the veteran locates in West Virginia
following separation from military service, resides in the state
during the period of exemption, and presents an application to
the state tax division of the department of tax and revenue along
with a DD form 214 and proof of a valid state driver's license or
other identification acceptable to the tax commissioner to verify
state residence. The veteran or spouse is eligible for the
exemption in any year within ten years following the date of
separation shown on the DD form 214.
(2) Temporary surtax. -- In addition to the primary tax
imposed upon the persons, for the periods, on West Virginia
taxable income, and at the rates, as aforesaid, there is hereby
imposed an additional tax, a temporary surtax, of twelve percent
of such the determined primary tax liability for individuals and
heads of household with West Virginia taxable income in excess of
ten thousand dollars and for those filing a joint return with
West Virginia taxable income in excess of twenty thousand
dollars; and with such the primary tax and additional tax, the temporary surtax, together with the minimum tax herein, to
constitute the tax imposed by this section and under this
article.
(3) Minimum tax. -- In addition to the primary tax and the
temporary surtax imposed by this section, there is imposed a
minimum tax, which shall be the excess, if any, by which an
amount equal to twenty-five percent of any federal minimum tax or
alternative minimum tax for the taxable year exceeds the sum of
the primary tax and the temporary surtax imposed by this section
for the taxable year.
(4) Effective date. -- The additional tax, the temporary
surtax herein imposed, and the minimum tax herein imposed are
hereby made effective on and after the first day of April, one
thousand nine hundred eighty-three: Provided, That the temporary
surtax shall expire, be nullified and of no further force or
effect whatsoever after the thirtieth day of June, one thousand
nine hundred eighty-five. Section four-e of this article,
applicable to the effect of any rate changes during a taxable
year shall be construed to include and also be applicable to the
surtax imposed in this section or any change of surtax hereafter
during a taxable year.
(b) Partners and partnerships. -- A partnership as such
shall not be subject to tax under this article. Persons carrying
on business as partners shall be liable for tax under this article only in their separate or individual capacities.
(c) Associations taxable as corporations. -- An association,
trust or other unincorporated organization which is taxable as a
corporation for federal income tax purposes, shall not be subject
to tax under this article.
(d) Exempt trusts and organizations. -- A trust or other
unincorporated organization which by reason of its purposes or
activities is exempt from federal income tax shall be exempt from
tax under this article (regardless of whether subject to federal
income tax on unrelated business taxable income).
(e) Cross references. -- For definitions of West Virginia
taxable income of:
(1) Resident individual, see section eleven.
(2) Resident estate or trust, see section eighteen.
(3) Nonresident individual, see section thirty-one.
(4) Nonresident estate or trust, see section thirty-eight.
NOTE: The purpose of this bill is to exempt from state
income tax for five years veterans and their spouses who locate
in the state following separation from military service.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.