H. B. 2210
(By Delegate Walters)
[Introduced January 12, 2011; referred to the
Committee on Energy, Industry and Labor, Economic Development and Small Business then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-13BB-1, §11-13BB-2, §11-13BB-3, §11-13BB-4 and §11-13BB-5, all relating to the “Small Business Development Incentive Program for Internal Growth Act”; providing a short title; declaring legislative findings; providing definitions of certain terms; providing exemptions from certain business-related taxes required by the state; and requiring the Commissioner of the Department of Revenue to propose legislative rules to implement the purposes and provisions of the article.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §11-13BB-1, §11-13BB-2, §11-13BB-3, §11-13BB-4 and §11-13BB-5, all to read as follows:
ARTICLE 13BB. SMALL BUSINESS DEVELOPMENT INCENTIVE PROGRAM FOR INTERNAL GROWTH ACT.
§11-13BB-1. Short title.
This article may be cited as the "Small Business Development Incentive Program for Internal Growth Act.”
§11-13BB-2. Legislative findings.
The Legislature finds that the encouragement of the location of new businesses in this state, and the expansion and growth of new businesses in the state is in the public interest and promotes the general welfare of this state. The Legislature further finds that during the start-up phase of a new business, it is particularly financially difficult for the business to grow and survive due to limited assets and resources in combination with significant liabilities and debt burdens necessarily incurred and which exist requiring repayment. This financial difficulty is further exacerbated by the significant business-related tax burden that exists beyond the required payments of amounts necessary to maintain Workers’ Compensation and unemployment compensation coverage.
For purposes of this article:
(a) “Small business” means any legal business, other than one directly related to the gambling industry, in which the owner or owners have been residents of the state for one year, the owner of the business has no other out-of-state business locations involving similar businesses, the business employs no more than fifty employees, and no other businesses of its nature exists in the county or municipality where the business is to locate; and
(b) “Business related tax” means any tax otherwise required by the Department of Revenue of this state, with the exception of personal income tax, Workers’ Compensation quarterly premiums or unemployment compensation premiums, which is required as a direct result of doing business in this state.
§11-13BB-4. Exemption from requirement to pay business-related taxes.
Within three months from inception of initial operations of a qualified small business, the owner of the business may apply to the State Tax Department for qualification status to participate as a small business and receive the exemptions from business-related taxes as provided herein. The Tax Department shall design, cause to be made, and provide upon request, application forms to be used by applicant businesses. Upon qualifying to participate in the Small Business Development Incentive Program for Internal Growth Act, a business is exempted from the payment of any business related tax with the exception of being required to pay appropriate calculated sums required to maintain Workers’ Compensation and unemployment compensation coverage. Upon the completion of five years of operation, or the employment of more than fifty employees, whichever occurs first, a business qualification status under the favorable treatment provided under the provisions of this article shall cease.
§11-13BB-5. Commissioner of the Department of Revenue to propose rules.
The Commissioner of the Department of Revenue shall propose legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code, designed to implement the provisions and purposes of this article.
NOTE: The purpose of this bill is to create the “Small Business Development Incentive Program for Internal Growth Act.” The bill exempts certain small businesses from paying business-related taxes if they qualify as start up businesses with limited resources.
This article is new; therefore, it has been completely underscored.