HB 3280 — Authorizing adjustment from federal adjusted gross income for certain law enforcement pension benefit payments

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for House Bill 3280 NOTE By Delegates Marple, Dean, Hott, Anderson, Zatezalo, Jennings, Adkins, Mallow, Petitto, DeVault,DeVault and Kimble [Introduced[Originating Februaryin 03,the 2023;Committee on Finance;

ReferredFebruary to22, the2023] CommitteeCS onfor Pensions and Retirement then Finance] Intr HB 2023R3297A3280 A BILL to amend and reenact §11-21-12 of the Code of West Virginia, 1931, as amended;

and to amend and reenact §20-7-1 of said code, all relating to pensionmodifications benefitsreducing exemptfederal fromadjusted gross income taxation;for certain pension benefits;

and includingauthorizing additional modifications for pension benefits paid to Division of Natural Resources police, deputy sheriffs, full-full-time time firefighters, and municipal police officersofficers. into the class of law-enforcement officers exempted.

1 CS for HB 3280 (4) Interest on indebtedness incurred or continued to purchase or carry obligations or securities the income from which is exempt from tax under this article, to the extent deductible in Intr HB 2023R3297A determining federal adjusted gross income;

2 CS for HB 3280 (4) The amount of any refund or credit for overpayment of income taxes imposed by this state, or any other taxing jurisdiction, to the extent properly included in gross income for federal income tax purposes;

Intr HB 2023R3297A (5) Annuities, retirement allowances, returns of contributions and any other benefit received under the West Virginia Public Employees Retirement System, and the West Virginia State Teachers Retirement System, including any survivorship annuities derived therefrom, to the extent includable in gross income for federal income tax purposes:

(6) Retirement income received in the form of pensions and annuities after December 31, 1979, under any West Virginia police, West Virginia Firemen’s Retirement System or the West Virginia State Police Death, Disability and Retirement Fund, the West Virginia State Police Retirement SystemSystem, or the West Virginia Deputy Sheriff Retirement SystemSystem, the West Virginia Natural Resources Police Officers System, or the West Virginia Public Employees Retirement System if paid to deputy sheriffs, full-time firefighters, municipal police officers or police officers retired from the Division of Natural Resources, including those formerly classified as conservation officers, deputy sheriffs, full-time firefighters, and municipal police officers, including any survivorship annuities derived from any of these programs, to the extent includable in gross income for federal income tax purposes;

(7) (A) For taxable years beginning after December 31, 2000, and ending prior to January 1, 2003, an amount equal to two percent multiplied by the number of years of active duty in the 3 CS for HB 3280 Armed Forces of the United States of America with the product thereof multiplied by the first $30,000 of military retirement income, including retirement income from the regular Armed Forces, Reserves and National Guard paid by the United States or by this state after December 31, 2000, including any survivorship annuities, to the extent included in gross income for federal income tax Intr HB 2023R3297A purposes for the taxable year.

(A) For taxable years beginning on and after January 1, 2020, 35 percent of the amount of social security benefits received pursuant to Title 42 U.S.C., Chapter 7, including, but not limited 4 CS for HB 3280 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.

seq., included in federal adjusted gross income for the taxable year shall be allowed as a decreasing modification Intr HB 2023R3297A from federal adjusted gross income when determining West Virginia taxable income subject to the tax imposed by this article, subject to the limitation in §11-21-12(c)(8)(D) of this code.

5 CS for HB 3280 (9) Federal adjusted gross income in the amount of $8,000 received from any source after December 31, 1986, by any person who has attained the age of 65 on or before the last day of the taxable year, or by any person certified by proper authority as permanently and totally disabled, regardless of age, on or before the last day of the taxable year, to the extent includable in federal Intr HB 2023R3297A adjusted gross income for federal tax purposes:

6 CS for HB 3280 (11) Contributions from any source to a medical savings account established by or for the individual pursuant to §33-15-20 or §33-16-15 of this code, plus interest earned on the account, to the extent includable in federal adjusted gross income for federal tax purposes:

For married individuals filing a joint return, the maximum Intr HB 2023R3297A deduction is computed separately for each individual;

7 CS for HB 3280 (3) Changes in the language of this section enacted in the year 2019 shall apply to taxable years beginning after December 31, 2018.

Intr HB 2023R3297A CHAPTER 20.

The chief natural resources police officer may also assign natural resources police officers to perform law-enforcement duties on any trail, grounds, appurtenant facility or other areas accessible to the public within the Hatfield-McCoy Recreation Area, under agreement that the Hatfield-McCoy Regional Recreation Authority, created pursuant 8 CS for HB 3280 to article fourteen of this chapter, shall reimburse the division for salaries paid to the officers and shall either pay directly or reimburse the division for all other expenses of the officers in accordance with actual or estimated costs determined by the chief natural resources police officer.

(c) The chief natural resources police officer, acting under supervision of the director, is Intr HB 2023R3297A authorized to select and appoint emergency natural resources police officers for a limited period for effective enforcement of the provisions of this chapter when considered necessary because of emergency or other unusual circumstances.

(e) The Director of the Division of Forestry is authorized to appoint and revoke Division of Forestry special natural resources police officers who are full-time civil service personnel who have satisfactorily completed a course of training as required by the Director of the Division of 9 CS for HB 3280 Forestry.

(f) The chief natural resources police officer, with the approval of the director, has the Intr HB 2023R3297A power and authority to revoke any appointment of an emergency natural resources police officer or of a special natural resources police officer at any time.

(k) Notwithstanding any provision of this code to the contrary, the provisions of subdivision (6), subsection c, section twelve, article twenty-one, chapter eleven of this code are inapplicable to pensions of natural resources police officers paid through the Public Employees Retirement SystemSystem. NOTE:

The purpose of this bill relates to pension benefits which are exempt from income taxation.

The bill adds Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers into the class of law-enforcement officers exempted.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.