ENGROSSED
Senate Bill No. 71
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(Originating in the Committee on Finance;
reported February 16, 1993.)
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A BILL to amend and reenact section three-a, article
twenty-three, chapter eleven of the code of West Virginia,
one thousand nine hundred thirty-one, as amended; and to
amend and reenact section three, article twenty-four of said
chapter, relating to updating the meaning of certain terms
used in the West Virginia business franchise tax act and the
West Virginia corporation net income tax act by bringing
them into conformity with their meanings for federal income
tax purposes for taxable years beginning after the
thirty-first day of December, one thousand nine hundred
ninety-one; preserving prior law; and specifying effective
date.
Be it enacted by the Legislature of West Virginia:
That section three-a, article twenty-three, chapter eleven
of the code of West Virginia, one thousand nine hundred thirty-
one, as amended, be amended and reenacted; and that section
three, article twenty-four of said chapter be amended and
reenacted to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-3a. Meaning of terms; general rule.
(a) Any term used in this article shall have the same
meaning as when used in a comparable context in the laws of the
United States relating to federal income taxes, unless a
different meaning is clearly required by the context or by
definition of this article. Any reference in this article to the
laws of the United States, or to the Internal Revenue Code, or to
the federal income tax law shall mean the provisions of the laws
of the United States as related to the determination of income
for federal income tax purposes. All amendments made to the laws
of the United States prior to the first day of January, one
thousand nine hundred ninety-three, shall be given effect in
determining the taxes imposed by this article for the tax period
beginning the first day of January, one thousand nine hundred
ninety-two, and thereafter, but no amendment to laws of the
United States made on or after the first day of January, one
thousand nine hundred ninety-three, shall be given effect.
(b)
Effective date. -- The amendments to this section
reenacted in the year one thousand nine hundred ninety-three
shall be retroactive and shall apply to taxable years beginning
on or after the first day of January, one thousand nine hundred
ninety-two, to the extent allowable under federal income tax law.
With respect to taxable years that began prior to the first day
of January, one thousand nine hundred ninety-two, the law in
effect for each of those years shall be fully preserved as to
each such year.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-3. Meaning of terms; general rule.
(a) Any term used in this article shall have the same
meaning as when used in a comparable context in the laws of the
United States relating to federal income taxes, unless a
different meaning is clearly required by the context or by
definition in this article. Any reference in this article to the
laws of the United States shall mean the provisions of the
Internal Revenue Code of 1986, as amended, and such other
provisions of the laws of the United States as relate to the
determination of income for federal income tax purposes. All
amendments made to the laws of the United States prior to the
first day of January, one thousand nine hundred ninety-three,
shall be given effect in determining the taxes imposed by this
article for any taxable year beginning the first day of January,
one thousand nine hundred ninety-two, and thereafter, but no
amendment to the laws of the United States effective on or after
the first day of January, one thousand nine hundred ninety-three,
shall be given any effect.
(b) The term "Internal Revenue Code of 1986" means the
Internal Revenue Code of the United States enacted by the
"Federal Tax Reform Act of 1986" and includes the provisions of
law formerly known as the Internal Revenue Code of 1954, as
amended, and in effect when the "Federal Tax Reform Act of 1986"
was enacted, that were not amended or repealed by the "Federal
Tax Reform Act of 1986". Except when inappropriate, any
references in any law, executive order, or other document:
(1) To the Internal Revenue Code of 1954 shall include
reference to the Internal Revenue Code of 1986; and
(2) To the Internal Revenue Code of 1986 shall include a
reference to the provisions of law formerly known as the Internal
Revenue Code of 1954.
(c)
Effective date. -- The amendments to this section
enacted in the year one thousand nine hundred ninety-three shall
be retroactive and shall apply to taxable years beginning on or
after the first day of January, one thousand nine hundred
ninety-two, to the extent allowable under federal income tax law.
With respect to taxable years that began prior to the first day
of January, one thousand nine hundred ninety-two, the law in
effect for each of those years shall be fully preserved as to
each such year.