H. B. 4698
(By Delegates Blair)
[Introduced February 18, 2008; referred to the
Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto two new sections, designated as §11-23-29 and
§11-24-43, relating to taxation; a credit for Ad Valorem tax
paid on Manufacturing Inventory, and other tangible personal
property which will reduce either or both the amount of
business franchise tax or corporate net income tax owed,
effective the first day of July, two thousand eight.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto two new sections, designated
§11-23-29
and º11-
24-43, to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-29.
Credit for Ad Valorem Taxation Of Manufacturing
Inventory, And Other Tangible Personal Property.
(1) Allowance of credit.
In the case of taxable periods beginning on or after the first day of July, two thousand eight,
every new incoming foreign corporation, in its first year of
business of which it is engaging in business in this state or
deriving income from property, activity or other sources in this
state, shall be allowed a refundable credit against the taxes paid
by this article equal to the amount of ad valorem property taxes
paid
on tangible personal property
.
(2) Allowance of credit.
In the case of taxable periods
beginning on or after the first day of July, two thousand eight,
every
foreign or domestic corporation, engaging in business in this
state or deriving income from property, activity or other sources
in this state,
shall be allowed a refundable credit against the
taxes imposed by this article equal to the amount of ad valorem
property taxes paid
on personal property for any new equipment
purchased
over the previous taxable year.
(3)Any remaining credit from tax paid under the provisions of
this section may be applied to any tax owed under the corporate net
income tax, as described in chapter eleven, section twenty four of
the Code of West Virginia, 1931, as amended.
(4) Legislative rule. - The tax commissioner shall propose
legislative rules for promulgation and implementation of this
section.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-43.
Credit for Ad Valorem Taxation Of Manufacturing Inventory, And Other Tangible Personal Property.
(1) Allowance of credit.
In the case of taxable periods
beginning on or after the first day of July, two thousand eight,
every new incoming foreign corporation, in its first year of
business of which it is engaging in business in this state or
deriving income from property, activity or other sources in this
state, shall be allowed a refundable credit against the taxes paid
by this article equal to the amount of ad valorem property taxes
paid
on tangible personal property
.
(2) Allowance of credit.
In the case of taxable periods
beginning on or after the first day of July, two thousand eight,
every
foreign or domestic corporation, engaging in business in this
state or deriving income from property, activity or other sources
in this state,
shall be allowed a refundable credit against the
taxes imposed by this article equal to the amount of ad valorem
property taxes paid
on personal property for any new equipment
purchased
over the previous taxable year.
(3) Any remaining credit from tax paid under the provisions of
this section may be applied to any tax owed under the business
franchise tax, as described in chapter eleven, section twenty three
of the Code of West Virginia, 1931, as amended.
(4) Legislative rule. - The tax commissioner shall propose
legislative rules for promulgation and implementation of this
section.
NOTE: The purpose of this bill is to provide a
tax credit for
Ad Valorem tax paid on Manufacturing Inventory, and other tangible
personal property which will reduce either or both the amount of
business franchise tax or corporate net income tax owed
, effective
the tax year beginning July 1, 2008.
§11-23-29 and §11-24-43
are new; therefore, strike-throughs
and underscoring have been omitted.
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