HOUSE CONCURRENT RESOLUTION NO. 125

(By Delegate Guthrie, Perdue, L. Phillips, Marshall,

                    Caputo, Barrett and Iaquinta)

Requesting the Joint Committee on Government and Finance authorize a study on how West Virginia can close its water’s edge loophole and recoup moneys lost due to the shifting of business profits to offshore tax havens.

    Whereas, The U.S. Public Interest Research Group estimates that states lose roughly $1 billion annually in tax revenue; and

    Whereas, The U.S. Public Interest Research Group estimates West Virginia’s annual lost tax revenue due to the use of offshore tax havens to be $9.6 million; and

    Whereas, The U.S. Public Interest Research Group report notes that the closing of Montana’s water’s edge loophole allowed it to collect $7.2 million in corporate taxes that would have otherwise gone uncollected in 2010, the last year for which data are available; and

    Whereas, The U.S. Public Interest Research Group report notes that after the closing of Oregon’s water’s edge loophole in 2013, the state’s Legislative Revenue Office expects the state will collect $18 million in corporate taxes in the 2014 tax year that would have otherwise gone uncollected, and that it estimates the state will collect an additional $42 million the 2015-2017 biennium; therefore, be it

    Resolved by the Legislature of West Virginia:

    That the Joint Committee on Government and Finance is hereby requested to study how West Virginia can close its water’s edge loophole and recoup moneys lost due to the shifting of business profits to offshore tax havens; and, be it

    Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2015, on its findings, conclusions, and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

    Further Resolved, That the expenses necessary to conduct this study and to prepare and draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.