H. B. 4381
(By Delegate Browning)
[Introduced
February 10, 2004
; referred to the
Committee on Industry and Labor, Economic Development and Small
Business then the Judiciary.]
A BILL to amend and reenact §11-12-5 of the code of West Virginia,
1931, as amended; to amend and reenact section §11A-1-7 of
said code; to amend and reenact §11A-2-11 of said code; and to
amend and reenact §11A-3-20 of said code, all relating to real
and personal property taxes; requiring payment of personal
property taxes as a condition precedent to receiving or
maintaining a business registration certificate; allowing the
tax commissioner to suspend a business registration
certificate for failure to pay delinquent personal property
taxes; requiring collection of delinquent personal property
taxes prior to collection for current personal property taxes;
requiring the tax commissioner to suspend or refuse to issue
a business registration certificate upon notice from the
sheriff that the registrant has not paid delinquent personal
property taxes; requiring the tax commissioner to propose legislative rules; requiring fees; establishing fund;
permitting abstract in lieu of certificate of attorney-at-law
for refund; and requiring compliance to enjoy benefits of
purchase.
Be it enacted by the Legislature of West Virginia:
That §11-12-5
of the code of West Virginia, 1931, as amended,
be amended and reenacted; that §11A-1-7 of said code
be amended and
reenacted; that §11A-2-11 of said code
be amended and reenacted;
and that §11A-3-20 of said code
be amended and reenacted, all to
read as follows:
CHAPTER 11. TAXATION.
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-5. Time for which registration certificate granted; power
of tax commissioner to suspend or cancel certificate;
refusal to renew.
(a)
Registration period. -- All business registration
certificates issued under the provisions of section four of this
article
shall be are for the period of one year beginning the first
day of July and ending the thirtieth day of the following June:
Provided, That beginning on or after the first day of July, one
thousand nine hundred ninety-nine, all business registration
certificates issued under the provisions of section four of this
article shall be issued for two fiscal years of this state, subject
to the following transition rule. If the first year for which a business was issued a business registration certificate under this
article began on the first day of July of an even-numbered calendar
year, then the tax commissioner may issue a renewal certificate to
that business for the period beginning the first day of July, one
thousand nine hundred ninety-nine, and ending the thirtieth day of
June, two thousand, upon receipt of fifteen dollars for each such
one-year certificate. Thereafter, only certificates covering two
fiscal years of this state shall be issued.
(b)
Revocation or suspension of certificate. --
(1) The tax commissioner may cancel or suspend a business
registration certificate at any time during a registration period
if:
(A) The registrant filed an application for a business
registration certificate, or an application for renewal thereof,
for the registration period that was false or fraudulent.
(B) The registrant willfully refused or neglected to file a
tax return or to report information required by the tax
commissioner for any tax imposed by or pursuant to this chapter.
(C) The registrant willfully refused or neglected to pay any
tax, additions to tax, penalties or interest, or any part thereof,
when they became due and payable under this chapter, determined
with regard to any authorized extension of time for payment.
(D) The registrant neglected to pay over to the tax
commissioner on or before its due date, determined with regard to any authorized extension of time for payment, any tax imposed by
this chapter which the registrant collects from any person and
holds in trust for this state.
(E) The registrant abused the privilege afforded to it by
article fifteen or fifteen-a of this chapter to be exempt from
payment of the taxes imposed by such articles on some or all of the
registrant's purchases for use in business upon issuing to the
vendor a properly executed exemption certificate, by failing to
timely pay use tax on taxable purchase for use in business, or by
failing to either pay the tax or give a properly executed exemption
certificate to the vendor.
(F) The registrant has failed to pay in full delinquent
personal property taxes owing.
(2) Before canceling or suspending any
such business
registration certificate, the tax commissioner shall give written
notice of his or her intent to suspend or cancel the business
registration certificate of the taxpayer, the reason for the
suspension or cancellation, the effective date of the cancellation
or suspension and the date, time and place where the taxpayer may
appear and show cause why such business registration certificate
should not be canceled or suspended. This written notice shall be
served on the taxpayer in the same manner as a notice of assessment
is served under article ten of this chapter, not less than twenty
days prior to the date of
such the show cause informal hearing. The taxpayer may appeal cancellation or suspension of its business
registration certificate in the same manner as a notice of
assessment is appealed under article
ten ten-a of this chapter:
Provided, That the filing of a petition for appeal
shall does not
stay the effective date of the suspension or cancellation. A stay
may be granted only after a hearing is held on a motion to stay
filed by the registrant, upon finding that state revenues will not
be jeopardized by the granting of the stay. The tax commissioner
may, in his or her discretion and upon such terms as he or she may
specify, agree to stay the effective date of the cancellation or
suspension until another date certain.
(3) On or before the first day of August, two thousand four,
the tax commissioner shall propose for promulgation legislative
rules through which ancillary procedures may be provided, pursuant
to authorization by the Legislature, to streamline the tax
commissioner's suspension of business registration certificates for
failure to pay delinquent personal property taxes pursuant to
paragraph (F), subdivision (1) of this section. If the rules
proposed for promulgation are authorized by the Legislature and
include requirements that county sheriffs provide the tax
commissioner or the registrant with information or notice, then
those requirements shall have the same force and effect as if set
forth herein. No provision of this subdivision may be construed to
restrict in any manner the authority of the tax commissioner to suspend such certificates for failure to pay delinquent personal
property taxes under paragraph (C) or (F), subdivision (1) of this
section or under any other provision of this code prior to the
authorization of the rules.
(c)
Refusal to renew. -- The tax commissioner may refuse to
issue or renew a business registration certificate if the
registrant is delinquent in the payment of any tax administered by
the tax commissioner under article ten of this chapter or the
corporate license tax imposed by article twelve-c of this chapter,
until the registrant pays in full all
such the delinquent taxes
including interest and applicable additions to tax and penalties.
In his or her discretion and upon such terms as he or she may
specify, the tax commissioner may enter into an installment payment
agreement with
such the taxpayer in lieu of the complete payment.
Failure of the taxpayer to fully comply with the terms of the
installment payment agreement shall render the amount remaining due
thereunder immediately due and payable and the tax commissioner may
suspend or cancel the business registration certificate in the
manner
hereinbefore provided
in this section.
(d) Refusal to renew due to delinquent personal property tax.
-- The tax commissioner shall refuse to issue or renew a business
registration certificate when informed in writing, signed by the
county sheriff, that personal property owned by the applicant and
used in conjunction with the business activity of the applicant is subject to delinquent property taxes: Provided, That the tax
commissioner may prescribe alternative means for electronic
transmission and handling of the notice from county sheriffs that
personal property owned by the applicant and used in conjunction
with the business activity of the applicant is subject to
delinquent property taxes. The tax commissioner shall forthwith
notify the applicant that the commissioner will not act upon the
application until information is provided evidencing that the taxes
due are either exonerated or paid.
(e) Fund created, fees for suspension, cancellation,
nonrenewal or nonissuance of business registration certificate,
fund deposits and expenditures. --
(1) Local tax compliance account. -- There is hereby
established in the state treasury a special revenue revolving
account to be known as the "Local Tax Compliance Account." The
local tax compliance account shall be a revolving fund. Deposits
and appropriations made to the account shall not be deemed to have
expired at the end of any fiscal period. Expenditures from the
account shall be used for general tax administration by the tax
division of the department of tax and revenue and for operation of
the tax division.
(2) Fees, penalty, information exchange. --
(A) The county shall pay to the tax commissioner a fee in the
amount of fifteen percent of all amounts of delinquent property tax, interest, additions to tax and penalties (other than the
penalty imposed under this subsection) collected from each taxpayer
for which the tax commissioner has suspended or canceled the
business registration certificate by reason of a property tax
delinquency, pursuant to a request of the sheriff or other county
official. The fee shall be calculated based on the amount of tax,
interest, additions to tax and penalties collected by the county
from the taxpayer out of the total liability for tax, interest,
additions to tax and penalties that was due and owing at the time
the business registration certificate suspension or cancellation
was issued by the tax commissioner.
(B) The county shall pay to the tax commissioner a fee in the
amount of fifteen percent of all amounts of delinquent property
tax, interest, additions to tax and penalties (other than the
penalty imposed under this subsection) collected from each taxpayer
for which the tax commissioner has refused to issue or renew the
business registration certificate pursuant to notice sent by the
county sheriff of a property tax delinquency under subsection (d)
of this section. The fee shall be calculated based on the amount
of tax, interest, additions to tax and penalties collected by the
county from the taxpayer out of the total liability for tax,
interest, additions to tax and penalties that was due and owing at
the time the refusal to issue or renew the business registration
certificate was asserted by the tax commissioner.
(C) The amount of the fifteen percent fee imposed under this
subsection shall be added by the sheriff to the delinquent
taxpayer's tax payable as an additional penalty, and shall be
payable to the county in the same manner as property tax due.
(D) Notwithstanding the provisions of section five-d, article
ten of this chapter, and notwithstanding any other provision of
this code to the contrary, the tax commissioner and county
employees and officials are hereby authorized to exchange such tax
information as may be necessary to efficiently administer a
property tax compliance program for suspension, revocation,
nonrenewal or nonissuance or business registration certificates of
taxpayers having property tax delinquencies pursuant to this
section.
(3) Deposits, expenditures. --
(A) All fees established in this subsection shall be remitted
by the county to the tax commissioner not later than thirty days
after collection or partial collection of the tax, interest,
additions to tax and penalties, or any part or component thereof,
on which the fee is based.
(B) All fees established by this subsection and received by
the tax commissioner shall be deposited by the tax commissioner
into the local tax compliance account created in this section. The
tax commissioner is authorized to use moneys in the local tax
compliance account for operation of the tax division and for general tax administration.
CHAPTER 11A. COLLECTION AND ENFORCEMENT OF PROPERTY TAXES.
ARTICLE 1. ACCRUAL AND COLLECTION OF TAXES.
§11A-1-7. No collection of current taxes until delinquent taxes
are paid.
The sheriff, in preparing his or her tax receipts for any
current year shall examine and compare them with the delinquent
list for the preceding year in his or her hands, and if any tract
or personal property is found to be delinquent for the preceding
year, he or she shall note the fact on his or her current receipts
and shall decline to receive current taxes on any land or personal
property where it appears to his or her office that a prior year's
taxes are unpaid. Acceptance of current taxes through oversight
shall not relieve the owner of any land or personal property, of
the liability to pay prior taxes and penalties imposed for
nonpayment.
ARTICLE 2. DELINQUENCY AND METHODS OF ENFORCING PAYMENT.
§11A-2-11. Delinquent lists; oath.
The sheriff, after ascertaining which of the taxes assessed in
his or her county are delinquent, shall, on or before the first day
of May next succeeding the year for which the taxes were assessed,
prepare the following delinquent lists, arranged by districts and
alphabetically by name of the person charged, and showing in
respect to each the amount of taxes remaining delinquent on April thirtieth: (1) A list of property in the landbook improperly
entered or not ascertainable; (2) a list of other delinquent real
estate; and (3) a list of all other delinquent taxes: Provided,
That the list shall conclude with a notice, substantially as
follows: "Any person holding a West Virginia business registration
certificate under the authority of article twelve, chapter eleven
of this code who does not pay all delinquent personal property
taxes may have his or her license to do business in this state
suspended until the delinquency is cured."
The sheriff on returning each list shall, at the foot thereof,
subscribe an oath, which shall be subscribed before and certified
by some person duly authorized to administer oaths, in from form or
effect as follows:
I, ........, sheriff (or deputy sheriff or collector) of the
County of ........., do swear that the foregoing list is, to the
best of my knowledge and belief, complete and accurate, and that I
have received none of the taxes listed therein.
Except for the oath, the tax commissioner state auditor shall
prescribe the form of the delinquent lists.
ARTICLE 3. SALE OF TAX LIENS AND NONENTERED, ESCHEATED AND WASTE
AND UNAPPROPRIATED LANDS.
§11A-3-20. Refund to purchaser of payment made at sheriff's sale
where property is subject of an erroneous assessment
or is otherwise nonexistent.
If after by the thirty-first day of December of the year
following payment of the amount bid at a sheriff's sale, the
purchaser discovers that the lien purchased at such that sale is
the subject of an erroneous assessment or is otherwise nonexistent,
such the purchaser shall submit the abstract or certificate of an
attorney-at-law that the property is the subject of an erroneous
assessment or is otherwise nonexistent. Upon receipt thereof, of
the abstract or certificate the sheriff shall cause the moneys so
paid to be refunded. Upon refund, the sheriff shall inform the
assessor of the erroneous assessment for the purpose of having the
assessor correct said the error. For failure to meet this
requirement, the purchaser shall lose all benefits of his or her
purchase.
NOTE: The purpose of this bill is to
require payment of
personal property taxes as a condition precedent to receiving or
maintaining a business registration certificate
.
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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