Source: http://www.legis.state.wv.us/Bill_Status/bills_text.cfm?billdoc=sb1017%20eng.htm&yr=2017&sesstype=1X&billtype=B&houseorig=S&i=1017
Timestamp: 2017-12-17 02:34:36
Document Index: 83796747

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§ 151', '§11', '§11', '§47', '§47', '§42', '§42', '§42', '§42', '§47', '§47']

SB 1017 Text
Engrossed Version Senate Bill 1017 History
Senate Bill 1017
[Introduced June 15, 2017]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-13A-3f; to amend and reenact §11-15-2, §11-15-3, §11-15-9, §11-15-9b and §11-15-9h of said code; to amend said code by adding thereto three new sections, designated §11-15-3d, §11-15-3e and §11-15-35; to amend and reenact §11-15A-2 and §11-15A-10 of said code; to amend said code by adding thereto two new sections, designated §11-21-4g and §11-21-4h; to amend and reenact §11-21-8a, §11-21-8e, §11-21-12 and §11-21-16 of said code; and to amend and reenact §11-24-23a and §11-24-23e of said code, all relating generally to the Tax Reform Act of 2017; imposing graduated rate severance tax on privilege of producing coal as of specified date and defining certain terms; increasing rate of consumers sales and service tax as of specified date and providing for rate reduction when certain criteria are met; imposing tax on telecommunication services and ancillary telecommunication services as of specified date; imposing tax on digital code, digital products and digital services as of specified date, and with respect thereto defining certain terms; eliminating or narrowing certain exemptions from consumers sales and service tax as of specified date; providing consumer sales and service tax exemption for services of professional employer organizations; allowing emergency legislative rules if promulgated by specified date; increasing rate of use tax as of specified date and providing corresponding rate reduction when rate of general consumers sales and service tax reduces; imposing new personal income tax rates for taxable years beginning on and after specified date; providing for further rate reductions when conditions are satisfied; exempting military retirement income from personal income tax after specified date; allowing a decreasing deduction for taxable Social Security under specified circumstances; increasing personal income tax exemption under certain circumstances; authorizing rebates of 2016 personal income tax paid by certain persons; increasing amount of credit allowed against personal and corporation net income taxes for qualified building rehabilitation expenditures made after specified date; establishing limitations on carryback and carryforward of credit for qualified building rehabilitation expenditures; and making technical corrections in various sections.
That §11-13A-3f of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §11-15-2, §11-15-3, §11-15-9, §11-15-9b and §11-15-9h of said code be amended and reenacted; that said code be amended by adding thereto three new sections, designated §11-15-3d, §11-15-3e and §11-15-35; that §11-15A-2 and §11-15A-10 of said code be amended and reenacted; that §11-21-8a, §11-21-8e, §11-21-12 and §11-21-16 of said code be amended and reenacted; that said code be amended by adding thereto two new sections, designated §11-21-4g and §11-21-4h; and that §11-24-23a and §11-24-23e of said code be amended and reenacted, all to read as follows:
(a) Notwithstanding the provisions of section three of this article, the rate of tax on the privilege of engaging or continuing within this state in the business of severing, extracting, reducing to possession, and producing coal for sale, profit or commercial use shall, for all tons of coal produced after June 30, 2017, is as follows. The basis of the tax is per ton revenue based on FOB mine realizations:
(1) For all tons of metallurgical grade coal produced after June 30, 2017, except for tons of thin seam coal:
More than $150 per ton........................................................................ 5.0% plus a
2% surtax on gross income in excess of $150 per ton.
(2) For all tons of steam grade coal produced after June 30, 2017, except for tons of thin seam coal:
Less than $42 per ton ................................................3.0%
$42 or more per ton but less than $49 per ton ...........3.7%
$49 or more per ton but less than $56 per ton ...........4.2%
$74 or more per ton …………………………………….8.0%
These rates include the thirty-five one hundredths of one percent additional severance tax imposed by the state for the benefit of counties and municipalities as provided in section six of this article. The rate of tax for each reporting period shall be determined by dividing the gross income of the taxpayer from sales of all steam grade coal during the reporting period, exclusive of sales of thin seam coal, by tons of all steam grade coal sold by the taxpayer during the reporting period but not including tons of thin seam coal.
(3) For tons of coal produced from seams of coal less than thirty-seven inches thick after June 30, 2017:
More than $150 per ton ....................................................................... 1.0% plus a
(4) For tons of coal produced from seams of coal at least thirty-seven inches thick, but not more than forty-five inches thick after June 30, 2017:
More than $150 per ton ....................................................................... 2.0% plus a
(c) Definition of metallurgical grade coal and steam grade coal. – For purposes of this section:
(1) Metallurgical grade coal is bituminous coal that is not steam grade coal.
(2) Steam grade coal is coal sold to an end-user or other intermediary that is intended for combustion by coal-fired electric generating units.
(3) The determination of whether coal is metallurgical grade coal or steam grade coal is made when the coal is first sold.
(a) General. When used in this article and article fifteen-a of this chapter, words defined in subsection (b) of this section have the meanings ascribed to them in this section, except in those instances where a different meaning is provided in this article or the context in which the word is used clearly indicates that a different meaning is intended by the Legislature.
(A) In general. "Contracting" means and includes the furnishing of work, or both materials and work, for another (by a sole contractor, general contractor, prime contractor, subcontractor or construction manager) in fulfillment of a contract for the construction, alteration, repair, decoration or improvement of a new or existing building or structure, or any part thereof, or for removal or demolition of a building or structure, or any part thereof, or for the alteration, improvement or development of real property. Contracting also includes services provided by a construction manager so long as the project for which the construction manager provides the services results in a capital improvement to a building or structure or to real property.
(B) Form of contract not controlling. An activity that falls within the scope of the definition of contracting constitutes contracting regardless of whether the contract governing the activity is written or verbal and regardless of whether it is in substance or form a lump sum contract, a cost-plus contract, a time and materials contract, whether or not open-ended, or any other kind of construction contract.
(C) Special rules. For purposes of this definition:
(4) Digital code” is defined in section three-e of this article;
(iii) Tangible personal property, custom software, digital code, digital products, or services, including equipment, machinery, apparatus, supplies, fuel and power, appliances, pipes, wires and mains, which are used immediately in the storage of gas or water, and equipment, machinery, tools, supplies and repair parts used to keep in operation exempt storage devices;
(iv) Tangible personal property, custom software, digital code, digital products, or services used immediately in the storage, removal or transportation of economic waste resulting from the activities of gas storage, the generation or production or sale of electric power, the provision of a public utility service or the operation of a utility business;
(v) Tangible personal property, custom software, digital code, digital products, or services used immediately in pollution control or environmental quality or protection activity or community safety or security directly relating to the activities of gas storage, generation or production or sale of electric power, the provision of a public utility service or the operation of a utility business.
(B) Uses of property, digital code, digital products, or services which would not constitute direct use or consumption in the activities of gas storage, generation or production or sale of electric power, the provision of a public utility service or the operation of a utility business include, but are not limited to:
(17) (19) "Sale", "sales" or "selling" includes any transfer of the possession or ownership of tangible personal property, digital code, digital products, or custom software for a consideration, including a lease or rental, when the transfer or delivery is made in the ordinary course of the transferor's business and is made to the transferee or his or her agent for consumption or use or any other purpose. "Sale" also includes the furnishing of a service for consideration. Notwithstanding anything to the contrary in this code, effective after the thirtieth day of June, two thousand eight, "sale" also includes the furnishing of prepaid wireless calling service for consideration.
(18) (20) "Service" or "selected service" includes all nonprofessional activities engaged in for other persons for a consideration, which involve the rendering of a service as distinguished from the sale of tangible personal property, digital code, digital products, or custom software, but does not include contracting, personal services or the services rendered by an employee to his or her employer or any service rendered for resale: Provided, That the term "service" or "selected service" does not include payments received by a vendor of tangible personal property as an incentive to sell a greater volume of such tangible personal property under a manufacturer's, distributor's or other third party's marketing support program, sales incentive program, cooperative advertising agreement or similar type of program or agreement, and these payments are not considered to be payments for a "service" or "selected service" rendered, even though the vendor may engage in attendant or ancillary activities associated with the sales of tangible personal property as required under the programs or agreements
(25) (27) "Ultimate consumer" or "consumer" means a person who uses or consumes services, digital code, digital products, or personal property.
(26) (28) "Vendor" means any person engaged in this state in furnishing services taxed by this article or making sales of tangible personal property, digital code, digital products, or custom software. "Vendor" and "seller" are used interchangeably in this article.
(c) Additional definitions. Other terms used in this article are defined in article fifteen-b of this chapter, which definitions are incorporated by reference into article fifteen of this chapter. Additionally, other terms used in this section may be defined in other sections of this article. may define terms primarily used in the section in which the term is defined.
(b) Amount of tax. -- The general consumer sales and service tax imposed by this article shall be at the rate of 6¢ on the dollar six percent of the sales price of sales or services tangible personal property, digital products, digital code, custom software or taxable service purchased, excluding gasoline and special fuel sales, which remain taxable at the rate of 5¢ on the dollar of sales five percent: Provided, That beginning July 1, 2017, the general consumers sales and service tax rate shall be six and fifty hundredths percent of the sales price, excluding sales of gasoline and special fuel, which remain taxable at the rate of five percent as provided in section eighteen-b of this article, and sales of motor vehicles, which are taxable as provided in section three-c of this article.
(d) (c) Calculation of tax on fractional parts of a dollar after December 31, 2003. - Beginning January 1, 2004, the The tax computation under subsection (b) of this section shall be carried to the third decimal place, and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.
(e) (d) No aggregation of separate sales transactions, exception for coin-operated devices.- Separate sales, such as daily or weekly deliveries, shall not be aggregated for the purpose of computation of the tax even though the sales are aggregated in the billing or payment therefor. Notwithstanding any other provision of this article, coin-operated amusement and vending machine sales shall be aggregated for the purpose of computation of this tax.
(f) (e) Rate of tax on certain mobile homes. - Notwithstanding any provision of this article to the contrary, after December 31, 2003, the tax levied on sales of mobile homes to be used by the owner thereof as his or her principal year-round residence and dwelling shall be an amount equal to six percent of fifty percent of the sales price multiplied by the general rate of the consumers sales and service tax specified in this section.
(g) (f) Construction; custom software, digital goods and digital code. - After December 31, 2003, whenever Whenever the words “tangible personal property” or “property” appear in this article, the same shall also include the words "custom software," “digital products” and “digital code.”
(h) (g) Computation of tax on sales of gasoline and special fuel. - The method of computation of tax provided in this section does not apply to sales of gasoline and special fuel.
(h) Reduction of general consumers sales and service tax rate. -- In the event that the calculations and measurements made by the Tax Commissioner under the provisions of paragraph (B), subdivision (1), subsection (e), section four-g, article twenty-one of this chapter effect the reduction of the tax rates sections as provided in subsection (d) of that section, then the Tax Commissioner shall make an additional determination as follows:
(1) The Tax Commissioner shall first measure the rolling average of cumulative collections of taxes imposed by this article and articles fifteen-a and twenty-one of this chapter that were deposited into the General Revenue Fund of the state through the end of that fiscal year and each of the four fiscal years immediately preceding that fiscal year. The Commissioner shall also make a similar measurement of those collections for the five-year period immediately preceding that fiscal year. If the application of the first measurement against the second measurement demonstrates an increase in those collections, then the Tax Commissioner shall determine the amount of that increase in dollars. The Tax Commissioner shall then determine the anticipated cumulative fiscal cost to the state in dollars of (A) the further reduction in the tax rates imposed by section three of this article as provided in subsection (d), section four-g, article twenty-one of this chapter during the next ensuing calendar year; and (B) a reduction in the general consumers sales and service and use tax rates from 6.5% to 6.25%.
(2) If the cumulative fiscal cost to the state determined in subdivision (2) of this subsection does not exceed the increase in collections, all as measured and calculated by the Tax Commissioner under subdivision (1) of this subsection, then the general consumers sales and service and use tax rates are reduced from 6.5% to 6.25%, effective on and after January 1 of the year in which the final reduction in the tax rates specified in section four-g, article twenty-one of this chapter takes effect.
§11-15-3e. Imposition of consumers sales tax on sales of digital products, digital code and digital services.
(a) Notwithstanding any other provision of this code to the contrary, on and after July 1, 2017, sales of digital code, digital products and digital services electronically transferred to the purchaser shall be subject to the consumers sales and service tax imposed by this article, except as otherwise provided in this article, and the use of digital code, digital products and digital services electronically transferred to the purchaser shall be subject to the use tax imposed by article fifteen-a of this chapter, except as otherwise provided in article fifteen-a of this chapter. The tax imposed by this article shall apply to sales of digital code, digital products and digital services electronically transferred to the purchaser regardless of whether the digital code, digital product or digital service is provided for permanent use or less than permanent use and regardless of whether continued payment is required.
(b) Definitions —
(2) “Digital audio-visual works” means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sound, if any. Digital audio-visual works include such items as motion pictures, movies, music videos, news and entertainment and live events. Digital audio-visual works do not include audio greeting cards sent by electronic mail. Digital audio-visual works includes the digital code, or a subscription to or access to a digital code, for receiving, accessing, or otherwise obtaining digital audio-visual-works.
(3) “Digital audio works” means works that result from the fixation of a series of musical, spoken, or other sounds including ringtones. Digital audio works includes such items as the following which may either be prerecorded or live: songs, music, readings of books or other written materials, speeches, ringtones, or other sound recordings. Digital audio works does not include audio greeting cards sent by electronic mail. Unless the context provides otherwise, in this article digital audio works includes the digital code, or a subscription to or access to a digital code, for receiving, accessing, or otherwise obtaining digital audio works.
(A) “Digital automated service," except as provided in paragraph (B) of this subdivision (4), means any service transferred electronically that uses one or more software applications that would be taxable if the results of the service were transferred on a tangible medium.
(B) "Digital automated service " does not include:
(vi) Telecommunications services and ancillary services as those terms are defined article fifteen-b of this chapter; or
(A) "Digital goods," except as provided in this subdivision, means sounds, images, data, facts, or information, or any combination thereof, transferred electronically, including, but not limited to, designated digital products and other products transferred electronically not included within the definition of designated digital products.
(B) The term " digital goods " does not include:
(iii) The Internet and Internet access service as those terms are defined the Internet Tax Freedom Act, Title 47, U.S.C. § 151 note, as existing on July 1, 2009.
(A) Periodicals;
(B) Magazines;
(C) Video or electronic games; and
(12) “Ringtone” means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication
(c) The sales of digital code and digital products on which tax is imposed by this section shall be subject to the transaction sourcing rules in article fifteen-b of this chapter.
(48) The services of “professional employer organizations” as defined in subsection (g), section two, article forty-six-a, chapter thirty-three of this code.
(2) Sales of services, machinery, supplies and materials directly used or consumed in the activities of manufacturing, transportation, transmission, communication, production of natural resources, gas storage, generation or production or selling electric power, provision of a public utility service or the operation of a utility service or the operation of a utility business, in the businesses or organizations named in this subdivision and does not apply to purchases of gasoline or special fuel: Provided, That beginning on July 1, 2017, all sales of services, machinery, supplies and materials directly used or consumed in the business activity of communication or transportation shall be subject to the tax imposed by this article: Provided, however that the preceding proviso shall not apply to the transportation of coal;
(c) Effective date. - The amendments to this section in 2017 shall take effect beginning July 1, 2017, and apply to sales made on and after that date: Provided, That the repeal of subdivision (6) of subsection (b) shall be construed to prohibit all transfers after July 31, 2017 to the State Road Fund established in the State Treasury pursuant to section fifty-two, article six of the Constitution, under this section of taxes imposed by this article and article fifteen-a of this chapter
(b) Definitions. -- As used in this article, the following terms have the following meanings:
(a) An excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of six percent of the purchase price of the property, digital code, digital product or taxable services, except as otherwise provided in this article: Provided, That beginning July 1, 2017, the rate of tax imposed by this section shall be six and fifty hundredths percent.
(b) Calculation of tax on fractional parts of a dollar. -- The tax computation under subsection (a) of this section shall be carried to the third decimal place and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.
(d) Use tax is hereby imposed upon every person using tangible personal property, digital code, digital products, custom software, or telecommunication service, ancillary telecommunication service, digital service or other taxable service within this state. That person's liability is not extinguished until the tax has been paid. A receipt with the tax separately stated thereon issued by a retailer engaged in business in this state, or by a foreign retailer who is authorized by the Tax Commissioner to collect the tax imposed by this article, relieves the purchaser from further liability for the tax to which the receipt refers.
(e) Purchases of tangible personal property, digital code, digital products, digital services, telecommunication services, ancillary telecommunication services or other taxable services made for the government of the United States or any of its agencies by ultimate consumers is subject to the tax imposed by this section. Industrial materials and equipment owned by the federal government within the State of West Virginia of a character not ordinarily readily obtainable within the state, is not subject to use tax when sold, if the industrial materials and equipment would not be subject to use taxes if sold outside of the state for use in West Virginia.
(c) At that time, each retailer, seller or certified service provider shall file with the Tax Commissioner a return for the preceding monthly period, except as otherwise provided in this article or article fifteen-b of this chapter, in the form prescribed by the Tax Commissioner showing the sales price of any or all tangible personal property, custom software and taxable services sold by the retailer or seller during the preceding quarterly period, the use of which is subject to the tax imposed by this article, and any other information the Tax Commissioner may consider necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of the tax, for the period covered by the return, except as otherwise provided in this article or article fifteen-b of this chapter: Provided, That where the tangible personal property, digital code, digital products or custom software is sold under a conditional sales contract, or under any other form of sale wherein the payment of the principal sum, or a part of the sum is extended over a period longer than sixty days from the date of the sale, the retailer may collect and remit each monthly period that portion of the tax equal to six percent of that portion of the purchase price actually received during the monthly period: Provided, That beginning July 1, 2017, the tax to be remitted shall be determined by multiplying the portion of the purchase price actually received during the monthly period by the general consumers sales and service tax rate specified in section three, article fifteen of this chapter.
§11-21-4g. Rate of tax – Taxable years beginning on and after January 1, 2018.
(a)(1) General. – For taxable years beginning on and after January 1, 2018, the tax imposed by section three of this article shall be determined under subsections (b), (c), (d) or (e) of this section, as appropriate.
(2) Rate of tax on individuals except married individuals filing separate returns, individuals filing joint returns, heads of households, estates and trusts. – The tax imposed by section three of this article on the West Virginia taxable income of every individual, except married individuals filing separate returns; every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; married individuals who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust shall be determined in accordance with the following table:
taxable income is:The tax is:
Less than $20,000 2.75% of taxable income
$20,000 or more but less than $35,000 $550.00 plus 4.75% of taxable
income in excess of $20,000
$35,000 or more but less than $125,000 $1,262,50 plus 5.75% of taxable
income in excess of $35,000
$125,000 or more but less than $150,000 $6,437.50 plus 6.00% of taxable
income in excess of $125,000
$150,000 or more$ 8,625.00 plus 6.5% of taxable
income in excess of $150,000.00
(3) Rate of tax on married individuals filing separate returns. – In the case of married individuals filing separate returns under this article for the taxable year, the tax imposed by section three of this article on the West Virginia taxable income of each spouse shall be determined in accordance with the following table:
Less than $10,000 2.75% of taxable income
$10,000 or more but less than $17,500 $275.00 plus 4.75% of taxable
income in excess of $10,000
Over $17,500 but less than $62,500 $631.25 plus 5.75% of taxable
income in excess of $17,500
$62,500 or more but less than $75,000 $3,218.75 plus 6.00% of taxable
income in excess of $62,500
$75,000 or more $4,312.50 plus 6.5% of taxable
income in excess of $75,000
(b) Legislative findings – The Legislative finds that the operation of subsection (a) of this section effects a reduction of the tax rates specified in section four-e of this article prior to January 1, 2018, and that further reductions of the tax rates specified in subsection (a) of this section shall occur by operation of subsections (c), (d) and (e) of this section at such times as specified herein, and upon such conditions as provided in subsection (f) of this section.
(c)(1) General. – For taxable years beginning on and after January 1, 2019, and thereafter, except as otherwise provided in this section, if the conditions described in subsection (f) of this section transpire, the tax imposed by section three of this article shall be determined under subdivisions (2) or (3) of this subsection, or under subsection (d) or subsection (e) of this section if made effective by operation of this section, as appropriate.
taxable income is:............................................................... The tax is:
Less than $20,000 ............................................................ 2.40% of taxable income
$20,000 or more but less than $35,000................... $480.00 plus 4.40% of taxable
$35,000 or more but less than $125,000.............. $1,140.00 plus 5.45% of taxable
$125,000 or but less than $150,000..................... $6,045.00 plus 5.75% of taxable
$150,000 or more$8,625.00 plus 6.50% of taxable
income in excess of $150,000
taxable income is:................................................................................. The tax is:
Less than $10,000............................................................ .2.40% of taxable income
$10,000 or more but less than $17,500................... $240.00 plus 4.40% of taxable
...................................................................................... income in excess of $10,000
$17,500 or more but less than $62,500................... $570.00 plus 5.45% of taxable
..................................................................................... income in excess of $17,500
$62,500 or more but less than $75,000…………..$3,022.50 plus 5.75% of taxable
..................................................................................... income in excess of $62,500
$75,000 or more $4,312.50 plus 6.50% of taxable
(d)(1) General. – For taxable years beginning on and after January 1 of the year following the year for which the provisions of subsection (c) of this section become effective, if at all, and thereafter, and if the conditions described in subsection (f) of this section transpire, the tax imposed by section three of this article shall be determined under subdivisions (2) or (3) of this subsection, as appropriate.
taxable income is: .............................................................. The tax is:
Less than $20,000 ............................................................ 2.05% of taxable income
$20,000 or more but less than $35,000................... $410.00 plus 4.05% of taxable
$35,000 or more but less than $125,000.............. $1,017.50 plus 5.10% of taxable
$125,000 or more but less than $150,000………….$5,607.50 plus 5.50% of taxable
$150,000 or more $8,625.00 plus 6.5% of taxable
Less than $10,000............................................................. 2.05% of taxable income
$10,000 or more but less than $17,500................... $205.00 plus 4.05% of taxable
..................................................................................... income in excess of $10,000
$17,500 or more but less than $62,500................... $508.75 plus 5.10% of taxable
$62,500 or more but less than $75,000................ $2,803.75 plus 5.50% of taxable
.................................................................................... income in excess of $62,500.
(e)(1) General. – For taxable years beginning on and after January 1 of the year following the year for which the provisions of subsection (d) of this section become effective, if at all, and thereafter, and if the conditions described in subsection (f) of this section transpire, the tax imposed by section three of this article shall be determined under subdivisions (2) or (3) of this subsection, as appropriate.
Less than $20,000 1.75% of taxable income
$20,000 or more but less than $35,000 $350.00 plus 3.80% of taxable
$35,000 or more but less than $125,000 $920.00 plus 4.65% of taxable
$125,000 or more but less than $150,000………....$5,105.00 plus 5.00% of taxable
$150,000 or more $8,625.00 plus 6.50% of taxable
Less than $10,000 1.75% of taxable income
$10,000 or more but less than $17,500 $175.00 plus 3.80% of taxable
$17,500 or more but less than $62,500 $460.00 plus 4.65% of taxable
$62,500 or more but less than $75,000 $2,552.50 plus 5.00% of taxable
income in excess of $62,500.
$75,000 or more ` $4,312.50 plus 6.50% of taxable
(f)(1) Conditions precedent to further reductions -- The reductions of the tax rates specified in subsection (a) of this section as provided in subsections (c), (d) and (e) of this section are conditioned upon the occurrence of the following:
(A) Following the end of fiscal year 2018, and each fiscal year thereafter as may be indicated by the prospective operation of subsection (c) of this section, the Tax Commissioner shall first measure the rolling average of cumulative collections of the taxes imposed by this article, article fifteen and article fifteen-a of this chapter that were deposited into the General Revenue Fund of the state through the end of that fiscal year and during each of the four fiscal years immediately preceding that fiscal year. The Commissioner shall also make a similar measurement of those collections for the five-year period immediately preceding that fiscal year. If the application of the first measurement against the second measurement demonstrates an increase in those collections, then the Tax Commissioner shall determine the amount of that increase in dollars. The Tax Commissioner shall then determine the anticipated fiscal cost to the state in dollars of the further reduction in the tax rates specified in subsection (a) of this section as provided in subsection (c) of this section, as applicable during the next ensuing calendar year. If the fiscal cost to the state of the further reduction in the tax rates specified in subsection (a) of this section as provided in subsection (c) of this section does not exceed the increase in collections, all as measured and calculated by the Tax Commissioner, then reduction in the tax rates imposed by section three of this article as provided in subsections (c), (d) or (e) of this section, as applicable, shall become effective on January 1 of the next calendar year.
(B) Following the end of fiscal year in which the tax rates are reduced as provided in paragraph (A) of this subdivision, and each fiscal year thereafter as may be indicated by the prospective operation of subsection (e) of this section, the Tax Commissioner shall first measure the rolling average of cumulative collections of the taxes imposed by this article, article fifteen and article fifteen-a of this chapter that were deposited into the General Revenue Fund of the state through the end of that fiscal year and during each of the four fiscal years immediately preceding that fiscal year. The Commissioner shall also make a similar measurement of those collections for the five-year period immediately preceding that fiscal year. If the application of the first measurement against the second measurement demonstrates an increase in those collections, then the Tax Commissioner shall determine the amount of that increase in dollars. The Tax Commissioner shall then determine the anticipated fiscal cost to the state in dollars of the further reduction in the tax rates specified in subsection (d) or (e) of this section, whichever is applicable as if the rates in subsection (c) or (d), whichever is applicable, were applicable during the next ensuing calendar year. If the fiscal cost to the state of the further reduction in the tax rates specified in subsection (c) of this section as provided in subsection (d) or subsection (e) of this section, whichever is applicable, does not exceed the increase in collections, all as measured and calculated by the Tax Commissioner, then reduction in the tax rates specified in subsection (d) or (e) of this section, whichever is applicable, shall become effective on January 1 of the next calendar year.
(2) Upon the operative date of the last reduction in the tax rates as provided in subsection (f) of this section, if the same shall occur, the provisions of this subsection shall thereafter become inoperative and no further rate reductions may be implemented by operation of this subsection.
§11-21-4h. Rebate of personal income taxes paid for tax year 2016 by certain taxpayers.
(a) In the case of personal income taxes due under this article for the taxable year beginning January 1, 2016 and ending December 31, 2016, taxpayers having West Virginia taxable income of $10,000 or less shall be allowed a rebate of $150.00, and taxpayers having West Virginia taxable income of more than $10,000 but not over $25,000 shall be allowed a rebate of $100.00, provided the taxpayer meeting these criteria, whichever is applicable, had a positive West Virginia personal income tax liability for the 2016 taxable year, determined after allowance of all allowable tax credits but before allowing credit for employer withholding taxes and estimated tax payments.
(b) The Tax Commissioner shall during February of 2018, cause checks or state warrants to be issued in the name of taxpayers entitled to a rebate for the amount of the rebate allowed under subsection (a) of this section and mailed to the last known address of the taxpayer.
Certified historic structures. - For certified historic structures, the credit is equal to ten percent of qualified rehabilitation expenditures as defined in §47(c)(2), Title 26 of the United States Code, as amended: Provided, That for qualified rehabilitation expenditures made after June 30, 2017, the credit allowed by this section is equal to twenty-five percent of the qualified rehabilitation expenditure: Provided, however, That the credit authorized by this section for qualified rehabilitation expenditures made after June 30, 2017, may not be used to offset tax liabilities prior to the tax year beginning January 1, 2019: Provided further, That the taxpayer may not be entitled to this credit if the taxpayer is in arrears in the payment of any tax administered by the Tax Division or the taxpayer is delinquent in the payment of property taxes on the property containing the certified historic tax structure when the applicant begins to claim the credit and throughout the time period within which the credit is claimed. The Tax Commissioner shall promulgate procedural rules in accordance with article three, chapter twenty-nine-a of this code that provide what information must accompany any claim for the tax credit for the determination that the taxpayer is not in arrears in the payment of any tax administered by the Tax Division nor is the taxpayer delinquent in the payment of property taxes on the property containing the certified historic tax structure. The Tax Commissioner may also propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code for the administration of this tax credit and to provide any necessary mechanism to recover credits claimed by taxpayers that become delinquent in the payment of property taxes on the property containing the historic structure or become in arrears in the payment of any tax administered by the Tax Division. This credit is available for both residential and nonresidential buildings located in this state, that are reviewed by the West Virginia Division of Culture and History and designated by the national park service, United States department of the interior as "certified historic structures," and further defined as a "qualified rehabilitated building," as defined under §47(c)(1), Title 26 of the United States Code, as amended.
(C) For taxable years beginning on and after January 1, 2018, the amount of military retirement income, including retirement income from the regular Armed Forces, Reserves, and National Guard, paid by the United States or this state on and after January 1, 2018, that is included in federal adjusted gross income for the taxable year, shall be allowed as a decreasing modification from federal adjusted gross income when determining West Virginia taxable income subject to the tax imposed by this article.
(C) (D) In the event that any of the provisions of this subdivision are found by a court of competent jurisdiction to violate either the Constitution of this state or of the United States, or is held to be extended to persons other than specified in this subdivision, this subdivision shall become null and void by operation of law.
(i) Where the total modification under subdivisions (1), (2), (5), (6), and (7) and (12) of this subsection is eight thousand dollars per person or more, no deduction shall be allowed under this subdivision; and
(ii) Where the total modification under subdivisions (1), (2), (5), (6), and (7) and (12) of this subsection is less than eight thousand dollars per person, the total modification allowed under this subdivision for all gross income received by that person shall be limited to the difference between eight thousand dollars and the sum of modifications under subdivisions (1), (2), (5), (6), and (7) and (12) of this subsection;
(i) Where the total modification under subdivisions (1), (2), (5), (6), (7), and (8) and (12) of this subsection is eight thousand dollars or more, no deduction shall be allowed under this subdivision; and
(ii) Where the total modification under subdivisions (1), (2), (5), (6), (7), and (8) and (12) of this subsection is less than eight thousand dollars per person, the total modification allowed under this subdivision for all gross income received by that person shall be limited to the difference between eight thousand dollars and the sum of subdivisions (1), (2), (5), (6), (7), and (8) and (12) of this subsection;
(iv) The term "corporation" means any corporation, joint-stock company or association and any business conducted by a trustee or trustees wherein interest or ownership is evidenced by a certificate of interest or ownership or similar written instrument;
(12) Decreasing modification for social security income.
(A) For taxable years beginning on and after January 1, 2018, fifty percent of the amount of social security benefits received pursuant to Title 42 U.S.C., Chapter 7, including but not limited to social security benefits paid by the Social Security Administration as Old Age, Survivors and Disability Insurance Benefits as provided in §42 U.S.C. 401 et. seq. or as Supplemental Security Income for the Aged, Blind, and Disabled as provided in §42 U.S.C. 1381 et. seq., included in federal adjusted gross income for the taxable year shall be allowed as a decreasing modification from federal adjusted gross income when determining West Virginia taxable income subject to the tax imposed by this article, subject to the limitation in paragraph (D) of this subdivision (12).
(B) For taxable years beginning on or after January 1, 2019, one-hundred percent of the social security benefits received pursuant to Title 42 U.S.C., Chapter 7, including but not limited to social security benefits paid by the Social Security Administration as Old Age, Survivors and Disability Insurance Benefits as provided in §42 U.S.C. 401 et. seq. or as Supplemental Security Income for the Aged, Blind, and Disabled as provided in §42 U.S.C. 1381 et. seq., included in federal adjusted gross income for the taxable year shall be allowed as a decreasing modification from federal adjusted gross income when determining West Virginia taxable income subject to the tax imposed by this article, subject to the limitation in paragraph (D) of this subdivision (12).
(C) Limitation on taking the deduction allowed by paragraphs (A) and (B) of subdivision (12). – The deduction allowed by paragraphs (A) and (B) of this subdivision (12): shall be allowable only when the federal adjusted gross income of a married couple filing a joint return, or a single individual, does not exceed $75,000, or $37,500 in the case of a married individual filing a separate return.
(D) In the event that any provision of this subdivision (12) is found by a court of competent jurisdiction to violate either the Constitution of the United States or this state, or is held to be extended to persons other than those specified in this section, this section shall become null and void by operation of law; and
(12) (13) Any other income which this state is prohibited from taxing under the laws of the United States.
(3) Changes in the language of this section enacted in the year 2017 shall apply to taxable years beginning after December 31, 2017.
(a) General. -- For any tax imposed under the provisions of this article with respect to any taxable year prior to January 1, 1983, a resident individual shall be allowed a West Virginia exemption of $600 for each exemption for which he or she is entitled to a deduction for the taxable year for federal income tax purposes. With respect to any taxable year beginning on or after January 1, 1983, and prior to January 1, 1984, said exemption shall be $700; with respect to any taxable year beginning on or after January 1, 1984, said exemption shall be $800; and with respect to any taxable year beginning on or after January 1, 1987, said exemption shall be $2,000. For taxable years beginning on and after January 1, 2018, an individual or married persons filing a joint return under this article that have federal adjusted gross income of $50,000 or less for the taxable year shall be allowed a West Virginia exemption of $2,500 for each exemption for which he or she is entitled to a deduction for the taxable year for federal income tax purposes.
(b) Husband and wife Married Individuals. -- If the West Virginia income taxes of a husband and wife married individuals are separately determined but their federal income tax is determined on a joint return, each of them shall be separately entitled, with respect to any taxable year prior to January 1, 1983, to a West Virginia exemption of $600 for each federal exemption to which he or she would be separately entitled for the taxable year if their federal income taxes had been determined on separate returns. With respect to any taxable year beginning on or after January 1, 1983, and prior to January 1, 1984, said exemption shall be $700; with respect to any taxable year beginning on or after January 1, 1984, said exemption shall be $800; and with respect to any taxable year beginning on or after January 1, 1987, said exemption shall be $2,000. For taxable years beginning on and after January 1, 2018, married individuals filing separate returns under this article that have federal adjusted gross income of $25,000 or less for the taxable year shall be allowed a West Virginia exemption of $2,500 for each federal exemption to which he or she would be separately entitled for the taxable year if their federal income taxes had been determined on separate returns.
(c) Surviving spouse. -- For taxable years beginning after December 31, 1986, a surviving spouse shall be allowed one additional exemption of $2,000 for the two taxable years beginning after the year of death of the deceased spouse; and in lieu thereof, for taxable years beginning after December 31, 2017, a surviving spouse that has a federal adjusted gross income of $50,000 or less for the taxable year shall be allowed one additional exemption of $2,500 for the two taxable years beginning after the year of death of the deceased spouse.
Certified historic structures. - For certified historic structures, the credit is equal to ten percent of qualified rehabilitation expenditures as defined in §47(c)(2), Title 26 of the United States Code, as amended: Provided, That for qualified rehabilitation expenditures made after June 30, 2017, the credit allowed by this section is equal to twenty-five percent of the qualified rehabilitation expenditure: Provided, however, That the credit authorized by this section for qualified rehabilitation expenditures made after June 30, 2017, may not be used to offset tax liabilities prior to the tax year beginning January 1, 2019: Provided further, That the taxpayer may not be entitled to this credit if the taxpayer is in arrears in the payment of any tax administered by the Tax Division or if the taxpayer is delinquent in the payment of property taxes on the property containing the certified historic tax structure when the applicant begins to claim the credit and throughout the time period within which the credit is claimed. The Tax Commissioner shall promulgate procedural rules in accordance with article three, chapter twenty-nine-a of this code that provide what information must accompany any claim for the tax credit for the determination that the taxpayer is not in arrears in the payment of any tax administered by the Tax Division nor is the taxpayer delinquent in the payment of property taxes on the property containing the certified historic tax structure. The Tax Commissioner may also propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code for the administration of this tax credit and to provide any necessary mechanism to recover credits claimed by taxpayers that become delinquent in the payment of property taxes on the property containing the historic structure or become in arrears in the payment of any tax administered by the Tax Division. This credit is available for both residential and nonresidential buildings located in this state that are reviewed by the West Virginia Division of Culture and History and designated by the national park service, United States department of the interior as "certified historic building", and further defined as a "qualified rehabilitated building", as defined under §47(c)(1), Title 26, of the United States Code, as amended.
NOTE The purpose of this bill is to enact the Tax Reform Act of 2017. Changes include imposing graduated rate severance tax on privilege of producing coal as of specified date and defining certain terms; increasing rate of consumers sales and service tax as of specified date and providing for rate reduction when certain criteria are met; imposing tax on telecommunication services and ancillary telecommunication services as of specified date; imposing tax on digital code, digital products and digital services as of specified date, and with respect thereto defining certain terms; eliminating or narrowing certain exemptions from consumers sales and service tax as of specified date; providing consumer sales and service tax exemption for services of professional employer organizations; allowing emergency legislative rules if promulgated by specified date; increasing rate of use tax as of specified date and providing corresponding rate reduction when rate of general consumers sales and service tax reduces; imposing new personal income tax rates for taxable years beginning on and after specified date; providing for further rate reductions when conditions are satisfied; exempting military retirement income from personal income tax after specified date; allowing a decreasing deduction for taxable social security under specified circumstances, increasing personal income tax exemption under certain circumstances; authorizing rebates of 2016 personal income tax paid by certain persons; increasing amount of credit allowed against personal and corporation net income taxes for qualified building rehabilitation expenditures made after specified date; establishing limitations on carryback and carryforward of credit for qualified building rehabilitation expenditures; and making technical corrections in various sections.