H. B. 2445
(By Delegate Craig)
[Introduced January 23, 2007; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-23-6 of the Code of West Virginia,
1931, as amended, relating to the reducing and gradually
eliminating the business franchise tax.
Be it enacted by the Legislature of West Virginia:
That §11-23-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-6. Imposition of tax; change in rate of tax.
(a) General. -- An annual business franchise tax is hereby
imposed on the privilege of doing business in this state and in
respect of the benefits and protection conferred. Such tax shall
be collected from every domestic corporation, every corporation
having its commercial domicile in this state, every foreign or
domestic corporation owning or leasing real or tangible personal
property located in this state or doing business in this state and from every partnership owning or leasing real or tangible personal
property located in this state or doing business in this state,
effective on and after the first day of July, one thousand nine
hundred eighty-seven.
(b) Amount of tax and rate; effective date. --
(1) On and after the first day of July, one thousand nine
hundred eighty-seven, the amount of tax shall be the greater of
fifty dollars or fifty-five one hundredths of one percent of the
value of the tax base, as determined under this article: Provided,
That when the taxpayer's first taxable year under this article is
a short taxable year, the taxpayer's liability shall be prorated
based upon the ratio which the number of months in which such short
taxable year bears to twelve: Provided, however, That this
subdivision shall not apply to taxable years beginning on or after
the first day of January, one thousand nine hundred eighty-nine.
(2) Taxable years after December 31, 1988. -- For taxable
years beginning on or after the first day of January, one thousand
nine hundred eighty-nine, the amount of tax due under this article
shall be the greater of fifty dollars or seventy-five one
hundredths of one percent of the value of the tax base as
determined under this article.
(3) Taxable years after June 30, 1997. -- For taxable years
beginning on or after the first day of July, one thousand nine
hundred ninety-seven, the amount of tax due under this article shall be the greater of fifty dollars or seventy hundredths of one
percent of the value of the tax base as determined under this
article.
(4) Taxable years after December 31, 2006. -- For taxable
years beginning on or after the first day of January, two thousand
seven, the amount of tax due under this article shall be the
greater of fifty dollars or fifty-five one hundredths of one
percent of the value of the tax base as determined under this
article.
(5) Taxable years after June 30, 2008. -- For taxable years
beginning on or after the first day of July, two thousand eight,
the amount of tax due under this article shall be reduced at the
beginning of each tax year by ten hundredths of one percent of the
value of the tax base as determined under the provisions of this
article. For the taxable years beginning on or after the first day
of July, two thousand thirteen, there shall be no tax due under the
provisions of this article.
(c) Short taxable years. -- When the taxpayer's taxable year
for federal income tax purposes is a short taxable year, the tax
determined by application of the tax rate to the taxpayer's tax
base shall be prorated based upon the ratio which the number of
months in such short taxable year bears to twelve: Provided, That
when the taxpayer's first taxable year under this article is less
than twelve months, the taxpayer's liability shall be prorated based upon the ratio which the number of months the taxpayer was
doing business in this state bears to twelve but in no event shall
the tax due be less than fifty dollars.
NOTE: The purpose of this bill is to reduce and gradually
eliminate the business franchise tax.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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