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Introduced Version Senate Bill 464 History

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Senate Bill No. 464

(By Senators Sprouse and Weeks)

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[Introduced March 7, 2004; referred to the Committee

on Finance.]

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A BILL to amend and reenact §11-23-6 of the Code of West Virginia, 1931, as amended, relating to the imposition of the business franchise tax.

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 The 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 the first day of July, one thousand nine hundred eighty-seven.
(b) Amount of tax and rate; effective date. --
(1) On and after the first day of July, one thousand nine hundred eighty-seven, the amount of tax shall be is the greater of fifty dollars or fifty-five one hundredths of one percent of the value of the tax base, as determined under this article: Provided, That when the taxpayer's first taxable year under this article is a short taxable year, the taxpayer's liability shall be is prorated based upon the ratio which the number of months in which such short taxable year bears to twelve: Provided, however, That this subdivision shall may not apply to taxable years beginning on or after the first day of January, one thousand nine hundred eighty-nine.
(2) Taxable years after December 31, 1988. -- For taxable years beginning on or after the first day of January, one thousand nine hundred eighty-nine, the amount of tax due under this article shall be is the greater of fifty dollars or seventy-five one hundredths of one percent of the value of the tax base as determined under this article.
(3) Taxable years after June 30, 1997. -- For taxable years beginning on or after the first day of July, one thousand nine hundred ninety-seven, the amount of tax due under this article shall be the greater of fifty dollars or seventy hundredths of one percent of the value of the tax base as determined under this article.
(4) Taxable years after June 30, 2005. - For taxable years beginning on or after the first day of July, two thousand six, the amount of tax due under this article shall be reduced at the beginning of each tax year by ten hundredths of one percent of the value of the tax base as determined under this article. For the taxable years beginning on or after the first day of July, two thousand eleven, there shall be no tax due under this article.
(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 is prorated based upon the ratio which the number 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 is 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 fifty dollars.




NOTE: The purpose of this bill is to gradually repeal the business franchise tax.

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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