West Virginia’s Exemption for State Retirement Plans Challenged

Taxpayers have asked the U.S. Supreme Court to review a West Virginia Supreme Court of Appeals decision finding that an income tax exemption available only to beneficiaries of certain state retirement plans did not discriminate against federal law enforcement officers. The West Virginia court concluded that there was no evidence that the exemption was intended to discriminate against employees or former employees of the federal government. Rather, the intent was to give a benefit to a narrow class of state retirees.

The U.S. Supreme Court has been asked specifically whether its precedent and the doctrine of intergovernmental tax immunity bars states from exempting groups of state retirees from state income tax while discriminating against similarly situated federal retirees based on the source of their retirement income.

Dawson v. State Tax Commissioner, U.S. Supreme Court, Dkt. 17-419, petition for certiorari filed September 19, 2017

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All stories by: CCHTaxGroup