Bill Text: WV SB601 | 2018 | Regular Session | Comm Sub
Bill Title: Relating to personal income tax
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-02-28 - To House Finance [SB601 Detail]
Download: West_Virginia-2018-SB601-Comm_Sub.html
WEST virginia legislature
2018 regular session
Committee Substitute
for
Senate Bill 601
By Senator Facemire
[Originating in the Committee on Finance; reported on February 23, 2018]
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 2068.
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 in 2018 through July 1, 2068.
(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 2068.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
