Senate Bill No. 259
(By Senator Chafin)
[Introduced January 8, 2014; referred to the Committee on Economic Development; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-13B-1 and §11-13B-2, all relating to imposing a tax on telecommunications businesses to produce revenue of approximately $10 million to be dedicated to the West Virginia Division of Tourism for promotion and maintenance of outdoor activities.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §11-13B-1 and §11-13B-2, all to read as follows:
ARTICLE 13B. TELECOMMUNICATIONS TAX.
§11-13B-1. Tax imposed on telecommunications businesses.
(a) Upon every telecommunications business selling or furnishing telegraph, telephone or other telecommunications service, there is hereby imposed an annual privilege tax on account of the business or other activities of the taxpayer, engaged in or carried on within this state, during the taxable year. The amount of taxes due shall be determined by application of rates against gross income, as specified in subsection (b) for telecommunications business effective on and after July 1, 2015.
(b) The percentage of tax to be applied to gross income to determine tax liability shall be approximately one quarter of one percent, but is to be calculated by the Tax Commissioner so as to produce revenue as close as reasonably possible to $10 million per year gross income from all telecommunications business beginning and ending within this state, and the gross income apportioned to this state from all telecommunications business that either begins or ends in this state.
(c) This section does not apply to telecommunications services provided by municipalities, or by any other political subdivisions of this state.
§11-13B-2. Proceeds of the tax.
Proceeds from the tax imposed by this article shall be paid to the West Virginia Division of Tourism to be used for the promotion and maintenance of outdoor activities including, but not limited to, skiing and white water rafting.
NOTE: The purpose of this bill is to create a tax on telecommunications businesses to provide as close as reasonably possible, $10 million in revenue to benefit promotion and maintenance of outdoor activities.
This article is new; therefore, strike-throughs and underscoring have been omitted.