89-130 | Virginia Tax

Tax Type

Individual Income Tax

Description

Pension and retirement income

Topic

Taxable Income

Date Issued

04-25-1989

April 25, 1989

Re: Request for Ruling: Individual Income Tax

Dear******************

This will reply to your letter of April 13, 1989, in which you wish to determine whether pensions paid by the ************* are excludable from Virginia taxation under Va. Code §58.1-322 (C) (3).

For purposes of computing Virginia taxable income, Va. Code §58.1-322 (C) (3) provides a subtraction from federal adjusted gross income for:

- Pensions or retirement income to officers and employees of the Commonwealth, its subdivisions and agencies ...

was created under an interstate agreement between the states of Maryland and Virginia and the District of Columbia. The agreement, which is set forth in Va. Code §§56-529 and 56-530, specifies that ************* "is hereby created, as an instrumentality and agency of each of the signatory parties hereto."

Based on the foregoing, I find that ********* is a subdivision of the Commonwealth for purposes of Va. Code §58.1-322 (C) (3) and that pensions paid by*******are excludable from Virginia taxable income under that statute. It should be noted, however, that the General Assembly will be meeting in special session from April 24 - 27, 1989, to consider the retirement income issue generally.

Sincerely,

W. H. Forst
Tax Commissioner

cc: Deputy Secretary of Finance

Rulings of the Tax Commissioner