West Virginia Senate Bill SB471

West Virginia 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/25/23

Caption

Amending modification date for federal adjusted gross income

Impact

If enacted, SB471 would significantly affect tax filings for retirees in West Virginia who rely on employer-provided pensions. With the extension of the modification date, retirees may benefit from the tax reduction over a more extended period, allowing them to retain a larger portion of their income during retirement years. The goal is to provide support to individuals whose pension plans have been adversely affected, thus helping them maintain their financial stability.

Summary

Senate Bill 471 proposes an amendment to the West Virginia Code pertaining to the modification date for federal adjusted gross income related to retirement benefits. Specifically, the bill seeks to move the applicable modification date from 2023 to 2028 for individuals who retire under a defined benefit pension plan that may have been modified or terminated. This bill allows these retirees to subtract the difference in pension benefits from their federal adjusted income, essentially providing tax relief to those who might not receive their expected pension payouts due to the termination of their plans.

Sentiment

The sentiment surrounding SB471 appears to be generally supportive among those advocating for pensioners and retirees. Supporters argue that the extension is necessary to account for pension adjustments and ensure that retirees do not suffer a financial penalty due to unforeseen changes in their pension plans. However, there may be concerns regarding the potential impact on state revenue due to the tax reductions allowed under this modified benefit adjustment, as it could lead to reduced financial resources available for other state programs.

Contention

Notable points of contention surrounding SB471 may include discussions on the financial implications for the state budget. Critics may argue that extending the benefit modification could lead to a significant decrease in tax revenues over the years. Additionally, some members may express concern over the fairness of the adjustment, questioning whether it adequately balances the needs of retirees with the state's fiscal responsibilities. The debate will likely focus on how to best support retirees while ensuring that the state can maintain its financial health.