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Introduced Version Senate Bill 29 History

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Senate Bill No. 29

(By Senators Stollings, Jenkins, Laird, Plymale and Miller

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         [Introduced February 13, 2013; referred to the Committee on Health and Human Resources; and then to the Committee on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-12j; and to amend said code by adding ther eto a new section, designated §11-24-25, all relating to providing a tax incentive to dental practitioners to perform dental services at no cost to indigent patients as defined in these sections.
Be it enacted by the Legislature of West Virginia:
    That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-21-12j; and that said code be amended by adding thereto a new section, designated §11-24-25, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-12j. Decreasing modification reducing federal adjusted gross income.
     (a) Legislative Findings. -- The Legislature finds that there is a need for the provision of dental services for the adult indigent. Poor dental health decreases overall health and well-being and in some cases may prevent a patient from receiving other necessary medical care, such as heart surgery. The adult indigent population has access to medical care through various public programs but access to dental care is extremely limited. The Legislature recognizes that many dentists provide dental services to adult indigent patients at no cost. Desiring to encourage more charity dental care, the Legislature hereby creates a tax incentive to reduce the taxable income of dentists providing services to adult indigent patients.
     (b) General. -- For tax years beginning on or after January 1, 2013, in addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection (c), section twelve of this article, the value of for services rendered to indigent dental patients at no cost by eligible taxpayers, is also an authorized modification reducing federal adjusted gross income but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years beginning in the taxable year in which the payment was made.
     (c) Definitions. -- When used in this section or in the administration of this section, terms defined in this subsection have the meanings ascribed to them by this subsection unless a different meaning is clearly required by the context in which the term is used or by specific definition in this article.
     (1) "Eligible taxpayer" is defined as a taxpayer who is licensed pursuant to article four, chapter thirty of this code.
     (2) "Indigent patient" is defined as a West Virginia resident whose income is one hundred fifty percent or more below the federal poverty level and who has no insurance coverage for dental care.
     (d) Amount of decreasing modification. -- The amount of decreasing modification allowable under this section to an eligible taxpayer may not exceed $15,000. The amount of the decreasing modification is the dollar value of any dental services provided to indigent patients at no cost based upon the number of hours worked times the rates specified by Medicaid for the reimbursement for dental services.
     (e) Screening and referral of adult indigent patients to eligible taxpayers for dental services for which the decreasing modification may be taken shall be done by the free clinics recognized by the State of West Virginia or by the Donated Dental Program.
     (f) Schedule. -- To assert this decreasing modification, eligible taxpayers shall prepare and file with the annual tax return filed pursuant to this article a schedule showing the amount of dental services provided at no cost to indigent patients during the taxable year, the amount of decreasing modification allowed under this section, the taxes against which the decreasing modification is being applied and other information that the Tax Commissioner may require. This annual schedule shall be in the form prescribed by the Tax Commissioner.
     (g) An eligible taxpayer may consider the amount of decreasing modification allowed under this section when determining the eligible taxpayer's liability under this article for periodic payments of estimated tax for the taxable year in accordance with the procedures and requirements prescribed by the Tax Commissioner. The annual total tax liability and total decreasing modification allowed under this section are subject to adjustment and reconciliation pursuant to the filing of the annual schedule required by subsection (e) of this section.
     (h) The Tax Commissioner may propose rules necessary to carry out the provisions of this section and to provide guidelines and requirements necessary to ensure uniform administrative practices statewide to effect the intent of this section, all in accordance with the provisions of article three, chapter twenty-nine-a of this code.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-25. Decreasing modification reducing federal taxable income.

     (a) Legislative Findings. -- The Legislature finds that there is a need for the provision of dental services for the adult indigent. Poor dental health decreases overall health and well-being and, in some cases, may prevent a patient from receiving other necessary medical care such as heart surgery. The adult indigent population has access to medical care through various public programs but access to dental care is extremely limited. The Legislature recognizes that many dentists provide dental services to adult indigent patients at no cost. Desiring to encourage more charity dental care, the Legislature hereby creates a tax incentive to reduce the taxable income of dentists providing services to adult indigent patients.
     (b) For tax years, beginning on or after January 1, 2013, in addition to amounts authorized to be subtracted from federal taxable income pursuant subsection (c), section six this article, the value of for services rendered to indigent dental patients at no cost by eligible taxpayers, is also an authorized modification reducing federal taxable income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal taxable income for the taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years, beginning in the taxable year in which the payment was made.
     (c) Definitions. -- When used in this section, or in the administration of this section, terms defined in this subsection have the meanings ascribed to them by this subsection, unless a different meaning is clearly required by the context in which the term is used, or by specific definition, in this article.
     (1) "Eligible Taxpayer" is defined as a taxpayer who is licensed pursuant to article four, chapter thirty of this code.
     (2) "Indigent Patient" is defined as a West Virginia resident whose income is two hundred percent or more below the federal poverty level, and who has no insurance coverage for dental care.
     (d) Amount of decreasing modification -- The amount of decreasing modification allowable under this section to an eligible taxpayer may not exceed $15,000: Provided, That the amount of the decreasing modification will be the dollar value of any dental services provided to indigent patients at no cost, based upon the number of hours worked times the rates specified by Medicaid for the reimbursement for dental services.
     (e) Screening and referral of indigent patients to eligible taxpayers for dental services for which the decreasing modification may be taken shall be done by the free clinics licensed by the State of West Virginia or by the Donated Dental Program.
     (f) Schedule. -- To assert this decreasing modification, eligible taxpayers shall prepare and file with the annual tax return filed pursuant to this article, a schedule showing the amount of dental services provided at no cost to indigent patients during the taxable year, the amount of decreasing modification allowed under this section, the taxes against which the decreasing modification is being applied and other information that the Tax Commissioner may require. This annual schedule shall set forth the information and be in the form prescribed by the Tax Commissioner.
     (g) An eligible taxpayer may consider the amount of decreasing modification allowed under this section when determining the eligible taxpayer's liability under this article for periodic payments of estimated tax for the taxable year, in accordance with the procedures and requirements prescribed by the Tax Commissioner. The annual total tax liability and total decreasing modification allowed under this section are subject to adjustment and reconciliation pursuant to the filing of the annual schedule required by subsection (e) of this section.
     (h) The Tax Commissioner may propose rules necessary to carry out the provisions of this section and to provide guidelines and requirements necessary to ensure uniform administrative practices statewide to effect the intent of this section, all in accordance with the provisions of article three, chapter twenty-nine-a of this code.

     NOTE: The purpose of the bill is to provide a tax incentive to dental practitioners to perform dental services at no cost to indigent patients as defined in this bill.
     
     §11-21-12j and §11-24-25 are new; therefore, strike-throughs and underscoring have been omitted.
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