This bill proposes the addition of a new section, 11-21-12o, to the Code of West Virginia, which aims to modify the federal adjusted gross income for individuals receiving retirement income. Specifically, it allows for the subtraction of amounts received as retirement allowances, pensions, annuities, or optional retirement allowances from various federal and state retirement systems, including those under the Federal Social Security Act and the West Virginia Public Employees Retirement System. Importantly, this exemption will also extend to the spouse or other beneficiaries upon the death of the primary retiree.

Furthermore, the bill grants the Tax Commissioner the authority to propose necessary rules to implement this section effectively, ensuring uniform administrative practices across the state. The provisions outlined in this bill will take effect for taxable years beginning on or before January 1, 2027. Overall, the bill seeks to provide financial relief to retirees by reducing their taxable income related to retirement benefits.

Statutes affected:
Introduced Version: 11-21-12o