H. B. 2554
(By Delegates Armstead, Sobonya, Carmichael,
Schoen, Ireland, Andes, Sumner and Miller, C.)
[Introduced January 13, 2010; 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 abolishing the business and
franchise tax starting July 1, 2009.
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 July 1, 1987.
(b)
Amount of tax and rate; effective date. --
(1) On and after July 1, 1987, the amount of tax shall be the
greater of $50 or fifty-five one hundredths of one percent of the
value of the tax base, as determined under this article.
Provided,
That However, 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 of months in which such short taxable
year bears to twelve.
Provided, however, That In addition, this
subdivision shall not apply to taxable years beginning on or after
January 1, 1989.
(2)
Taxable years after December 31, 1988. -- For
taxable
years beginning on or after January 1, 1989, the amount of tax due
under this article shall be the greater of $50 or seventy-five one
hundredths of one percent of the value of the tax base under this
article.
(3)
Taxable years after June 30, 1997. -- For taxable years
beginning on or after July 1, 1997, the amount of tax due under
this article shall be the greater of $50 or seventy hundredths of
one percent of the value of the tax base under this article.
(4)
Taxable years after December 31, 2006. -- For taxable
years beginning on or after January 1, 2007, the amount of tax due under this article shall be the greater of $50 or fifty-five one
hundredths of one percent of the value of the tax base under this
article.
(5) Taxable years after the thirty-first day of December 31,
two thousand eight. -- For taxable years beginning on or after the
first day of January, two thousand nine, the amount of tax due
under this article shall be the greater of fifty dollars or
forty-eight one hundredths of one percent of the value of the tax
base as determined under this article.
(6) Taxable years after the thirty-first day of December, two
thousand nine. -- For taxable years beginning on or after the first
day of January, two thousand ten, the amount of tax due under this
article shall be the greater of fifty dollars or forty-one one
hundredths of one percent of the value of the tax base as
determined under this article.
(7) Taxable years after the thirty-first day of December, two
thousand ten. -- For taxable years beginning on or after the first
day of January, two thousand eleven, the amount of tax due under
this article shall be the greater of fifty dollars or thirty-four
one hundredths of one percent of the value of the tax base as
determined under this article.
(8) Taxable years after the thirty-first day of December, two
thousand eleven. -- For taxable years beginning on or after the
first day of January, two thousand twelve, the amount of tax due under this article shall be the greater of fifty dollars or
twenty-seven one hundredths of one percent of the value of the tax
base as determined under this article.
(9) Taxable years after the thirty-first day of December, two
thousand twelve. -- For taxable years beginning on or after the
first day of January, two thousand thirteen, the amount of tax due
under this article shall be the greater of fifty dollars or twenty
one hundredths of one percent of the value of the tax base as
determined under this article.
(10) Taxable years after the thirty-first day of December, two
thousand thirteen. -- For taxable years beginning on or after the
first day of January, two thousand fourteen, the amount of tax due
under this article shall be the greater of fifty dollars or ten one
hundredths of one percent of the value of the tax base as
determined under this article.
(11) Taxable years after the thirty-first day of December, two
thousand fourteen. -- For taxable years beginning on or after the
first day of January, two thousand fifteen, there shall be no tax
due under the provisions of this article.
(5) Abolishment of tax. -- For taxable years beginning on or
after July 1, 2009, the tax imposed by this article is abolished.
(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 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 $50.
NOTE: The purpose of this bill is to abolish the business
franchise tax effective July 1, 2009.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
Email
Webmaster | © 2024 West Virginia Legislature **
