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West Virginia May Change Annuity Tax Law

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NU Online News Service, April 3, 3:33 p.m. – West Virginia Gov. Bob Wise, a Democrat, is considering S.B. 647, a bill that would change the state law governing how life insurers report and pay taxes on annuities written in the state.

The bill, which was introduced by Sen. Oshel Craigo, D-Putnam County, would give life insurers a choice. Insurers could report that they have received annuity revenue when customers apply for the annuities, or the insurers could wait and record the revenue when they have actually received the cash.

A life insurer could choose a reporting approach by using the approach in its 2001 tax return, then filing a written notice of its choice with the insurance commissioner. A life insurer that entered the state after 2001 would have to notify the commissioner of its choice of revenue reporting methods within 90 days after entry.

The state Senate approved the bill Feb. 27, and the House approved a different version March 8. The Senate approved the House version, and lawmakers sent the House version to Wise March 26.