SENATE CONCURRENT RESOLUTION NO. 74

(By Senators Jenkins, Plymale, Edgell, Fanning and Harrison)

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[Originating in the Committee on Pensions.]

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Requesting the Joint Committee on Government and Finance study the potential cost and benefit to the state of exempting additional federal retirement benefits from federal adjusted gross income for state income tax purposes.

Whereas, West Virginia's many positive features, such as scenic beauty, low crime rate, low housing costs, moderate climate and welcoming communities, make it an attractive residence option for retired persons; and
Whereas, Many federal employees reside in West Virginia because of the state's proximity to the Washington, D. C., area and other nearby areas with concentrated opportunities for federal employment; and
Whereas, Exempting additional federal retirement benefits from West Virginia income tax may attract and retain more retired persons to become citizens of the state; and
Whereas, The growing population of retired citizens, including federal retirees, contributes to the economic vitality, cultural diversity and social progress of the communities; and
Whereas, Some studies suggest that any loss of revenue resulting from exempting additional federal retirement benefits from state income tax may be offset by other economic contributions generated by attracting and retaining federal retirees in West Virginia; and
Whereas, Exempting additional federal retirement benefits from state income tax would require review to ensure that all taxpayers are treated fairly and equitably and in a manner consistent with the state's constitution; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to study the potential cost and benefit to the state of exempting additional federal retirement benefits from federal adjusted gross income for state income tax purposes; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2005, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.