COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 447
(By Senators Bowman, Kessler, Edgell and McKenzie)
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[Originating in the Committee on Finance;
reported March 30, 2001.]
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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
twelve-d, relating to providing a personal income tax
adjustment to the gross income of certain retirees receiving
pensions from defined benefit pension plans that terminated
and are being paid at a reduced maximum benefit guarantee; and
providing a sunset provision.
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
twelve-d, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
Part I. General.
§11-21-12d. Additional modification reducing federal adjusted
gross income.
In addition to amounts authorized to be subtracted from
federal adjusted gross income pursuant to subsection (c), section
twelve of this article, any person retired whose employer has
provided a defined benefit pension plan that terminates prior to or
after the retirement of that person and the pension plan is covered
by a guarantor whose maximum benefit guarantee is less than the
maximum benefit to which the retiree was entitled had the plan not
terminated may subtract a sum equal to the difference in the amount
of the maximum pension benefit the person would have received had
the plan not terminated and the amount actually received from the
guarantor under a benefit guarantee plan: Provided, That if the tax
commissioner determines that this adjustment reduces the revenues
of the state by two million dollars or more in any one year, then
the tax commissioner shall reduce the percentage of the reduction
to a level at which the commissioner believes will reduce the cost
of the adjustment to two million dollars for the next year. This
tax adjustment shall be effective for taxable years beginning on
and after the first day of January two thousand one: Provided,
however, That the adjustment shall terminate for the tax years on or after the first day of January, two thousand four. This
modification is available regardless of the type of return form
filed.
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(NOTE: The purpose of this bill is to provide a personal
income tax adjustment to the gross income of certain retirees
receiving pensions from defined pension plans that terminated and
are being paid at a reduced maximum benefit guarantee rate.
This section is new; therefore, strike-throughs and
underscoring have been omitted.)