H. B. 2192


(By Mr. Speaker, Mr. Chambers, and Delegate Burk)
[By Request of the Executive]
[Introduced February 19, 1993; referred to the
Committee on Finance.]



A BILL to amend and reenact section nine, article twenty-three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section thirteen, article twenty-four of said chapter, relating to extending the due dates of the annual return for the business franchise tax and the annual return for the corporation net income tax for certain tax exempt organizations that realize unrelated business income; and specifying effective dates.

Be it enacted by the Legislature of West Virginia:
That section nine, article twenty-three, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section thirteen, article twenty-four of said chapter be amended and reenacted to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.

§11-23-9. Annual returns.

(a)
In general. -- Every person subject to the tax imposed by this article shall make and file an annual return for the taxable year with the tax commissioner on or before:
(1) The fifteenth day of the third month of the next succeeding taxable year if the person is a corporation; or
(2) The fifteenth day of the fourth month of the next succeeding taxable year if the person is a partnership.
The annual return shall include such information as the tax commissioner may require for determining the amount of taxes due under this article for the taxable year.
(b) Special rule for tax exempt organizations with unrelated business taxable income. -- Notwithstanding the provisions of subsection (a), when a business franchise tax return is required from an organization generally exempt from tax under subsection (b), section seven of this article, which has unrelated business taxable income, the annual return shall be filed on or before the fifteenth day of the fifth month following the close of the taxable year.
(b) (c)
Consolidated returns. -- (1) Any corporation that files as part of an affiliated group for purposes of the tax imposed by article twenty-four of this chapter shall file a consolidated return under this article.
(c) (d) The tax commissioner may, at his or her discretion, require an affiliated group of corporations to file a consolidated tax return under this article in order to accurately determine the taxes due under this article.
(e) Effective date. -- The amendments to this section made in the year one thousand nine hundred ninety-three, shall apply to tax returns that become due after the first day of that year.
ARTICLE 24. CORPORATION NET INCOME TAX.

§11-24-13. Returns; time for filing.

(a) On or before the fifteenth day of the third month following the close of a taxable year, an income tax return under this article shall be made and filed by or for every corporation subject to the tax imposed by this article.
(b) Special rule for tax exempt corporations with unrelated business taxable income. -- Notwithstanding the provisions of subsection (a), when an income tax return is required from a corporation generally exempt from tax under subsection (a), section five of this article, which has unrelated business taxable income, the annual return shall be filed on or before the fifteenth day of the fifth month following the close of the taxable year.
(b) (c) The tax commissioner may combine into one form the annual return due under this article and the annual return due under article twenty-three of this chapter. When a combined business franchise tax and corporation net income tax annual return is filed by a taxpayer, the amount of tax remitted shall be applied first against any business franchise tax that may be due for the taxable year under article twenty-three of this chapter and then against any corporation net income tax that may be due for the taxable year. The tax commissioner may alsocombine the forms for filing declarations of estimated tax and the forms for making installment payments of estimated tax.
(c) (d)
Effective date. -- The amendments to this section made by this act shall apply to all taxable years ending after the effective date of this act in the year one thousand nine hundred ninety-three, shall apply to tax returns that become due after the first day of that year.



NOTE: The purpose of this bill is to extend the due date of business franchise and corporation net income tax returns filed by certain tax exempt organizations that derive unrelated business taxable income to coincide with the due date of their federal income tax return.

Strike-throughs indicate language that would be deleted from current law, and underscoring indicates language that would be added.