SB 186
Exempting non-grantor trusts administered in state from personal income taxation
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill proposes to exempt non-grantor trusts administered in West Virginia from state personal income tax. Specifically, it targets trusts that are not ‘grantor trusts’ (where the creator retains control) and are administered by a licensed private trust company based in West Virginia, or by a West Virginia resident trustee. The bill amends several sections of the West Virginia Code related to personal income tax, including those concerning individual, estate, and trust taxation, and clarifies the definition of a non-grantor trust. It also addresses withholding tax requirements for nonresident partners, shareholders, and beneficiaries of trusts and estates.
Key provisions
- Exempts non-grantor trusts administered in West Virginia from state personal income tax.
- Specifically exempts trusts administered by licensed private trust companies located in West Virginia.
- Defines a ‘non-grantor trust’ as a trust other than a grantor trust as defined by the Internal Revenue Code.
- Modifies the calculation of West Virginia taxable income for estates and trusts.
- Adjusts the state income tax rates for non-grantor trusts administered by licensed private trust companies.
- Addresses withholding tax requirements for nonresident partners, shareholders, and beneficiaries.
- Establishes procedures for transferring a trust’s principal place of administration.
- Clarifies definitions related to trusts and taxation within the West Virginia Code.
Who is affected
- Trusts (specifically non-grantor trusts)
- West Virginia residents administering trusts
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