H. B. 3074
(By Delegates Walters, By Request and
Webb, Armstead and L. Smith)
[Introduced March 29, 2001; referred to the
Committee on Education then Finance.]
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 exempting students attending state
colleges or universities in undergraduate programs and
graduates of undergraduate programs of state institutions of
higher learning for the first two tax years postgraduation
from the payment of state income tax; providing that students
attending state institutions and enrolled in undergraduate
programs and undergraduate graduates of state institutions for
the first two years after graduating shall pay seventy-five
percent of any state income tax that they otherwise would owe
to the particular institution or other corporate creditor from
which the student or graduate obtained student loans to attend
the state institution of higher learning.
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.
§11-21-12d. Exemption for students attending or graduated from
state institutions of higher learning.
Any student attending full-time a state public institution of
higher learning in an accredited undergraduate program and for the
first two tax years following successful completion of an
undergraduate program,
is exempt from the tax imposed by this
article: Provided, That in order to qualify for this exemption,
the taxpayer must present proof to the state tax department that in
the year of exemption provided under this section, he or she paid
a minimum sum equal to or greater than seventy-five percent of the
tax liability that would have otherwise existed under this article
in the subject tax year to the institution or other qualified
lending entity to which the taxpayer has incurred a debt in the
form of a student loan or student loans. The tax commissioner
shall propose legislative rules in accordance with article three,
chapter twenty-nine-a of this code designed to effectuate the
provisions of this section.
NOTE: The purpose of this bill is to
exempt undergraduate
students attending state colleges or universities as well as graduates of undergraduate programs of such state institutions for
the first two tax years postgraduation, from the payment of state
income tax. The bill also provides that the undergradutate
students and undergraduate graduates for the first two years after
graduating shall pay seventy-five percent of any state income tax
that they otherwise would owe to the particular institution or
other qualified lending creditor they owe for student loans. The
tax commissioner is directed to propose legislative rules to
effectuate the purposes of the bill.
This section is new; therefore, strike-throughs and
underscoring have been omitted.