Bill Text: WV SB106 | 2019 | Regular Session | Comm Sub
Bill Title: Alleviating double taxation on foreign income at state level
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-02-15 - To House Finance [SB106 Detail]
Download: West_Virginia-2019-SB106-Comm_Sub.html
WEST virginia legislature
2018 regular session
Committee Substitute
for
Senate Bill 106
Senator Facemire, original sponsor
[Originating in the Committee on Finance; reported on January 11, 2019]
A BILL to amend and reenact §11-21-20 of the Code of West Virginia, 1931, as amended, relating to personal income tax; alleviating double taxation on foreign income at the state level; and sunsetting the credit for income tax paid on foreign income in 2069.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-20. Credit for income tax of another state and foreign country.
(a) General. – A resident shall be is
allowed a credit against the tax otherwise due under
this article for any income tax imposed for the taxable year by another state
of the United States, or by the District of Columbia, or by a foreign
country upon income both derived therefrom and subject to tax under this
article.
(b) Limitations. – (1) The credit under this
section shall may not exceed the percentage of the tax otherwise
due under this article determined by dividing the portion of the taxpayer’s
West Virginia income subject to taxation by such the other
jurisdiction by the total amount of the taxpayer’s West Virginia income.
(2) The credit under this section shall may
not reduce the tax otherwise due under this article to an amount less than
would have been due if the income subject to taxation by such the
other jurisdiction were excluded from the taxpayer’s West Virginia income.
(c) Exception. – No credit shall be is
allowed under this section for a tax of a jurisdiction which allows residents
of this state a credit against the taxes imposed by such the
other jurisdiction for the tax under this article, if such the
other credit is substantially similar to the credit granted by §11-21-40 of
this code.
(d) Sunset provision. – The credit allowed against the tax otherwise due under this article for any income tax imposed for the taxable year by a foreign country upon income both derived therefrom and subject to tax under this article shall be effective from the amendment and reenactment of this section during the regular session of the Legislature, 2019, through July 1, 2069.
(d) (e) Definition. – For purposes of
this section, West Virginia income means:
(1) The West Virginia adjusted gross income of an individual; or
(2) The amount of the income of an estate or trust, determined as if the estate or trust were an individual computing his or her West Virginia adjusted gross income under §11-21-12 of this code.
NOTE: The purpose of this bill is to alleviate double taxation on foreign income at the state level under the personal income tax. The section sunsets the credit for foreign income in 2069.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
