H. B. 2671
(By Delegate Rowe)
[Introduced February 23, 1995; referred to the Committee
on the Judiciary.]
A BILL to amend and reenact section five, article twelve, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to business
registration certificates; effective periods, revocation,
suspension and refusal to renew certificates; and
requirement that all delinquent personal and real property
taxes be paid prior to issuance or renewal of certificate.
Be it enacted by the Legislature of West Virginia:
That section five, article twelve, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-5. Time for which registration certificate granted; power of tax commissioner to suspend or cancel
certificate; refusal to renew; payment of
delinquent property taxes.
(a) Registration year. -- All business registration
certificates issued under the provisions of section four of this
article shall be for the period of one year beginning the first
day of July and ending the thirtieth day of the following June.
(b) Revocation or suspension of certificate.
(1) The tax commissioner may cancel or suspend a business
registration certificate at any time during a registration year
(A) The registrant filed an application for a business
registration certificate, or an application for renewal thereof,
for the registration year that was false or fraudulent.
(B) The registrant willfully refused or neglected to file a
tax return or to report information required by the tax
commissioner for any tax imposed by or pursuant to this chapter.
(C) The registrant willfully refused or neglected to pay any
tax, additions to tax, penalties or interest, or any part
thereof, when they became due and payable under this chapter,
determined with regard to any authorized extension of time for
(D) The registrant neglected to pay over to the tax
commissioner on or before its due date, determined with regard to
any authorized extension of time for payment, any tax imposed by
this chapter which the registrant collects from any person and
holds in trust for this state.
(E) The registrant abused the privilege afforded to it by
article fifteen or fifteen-a of this chapter to be exempt from
payment of the taxes imposed by such articles on some or all of
the registrant's purchases for use in business upon issuing to
the vendor a properly executed exemption certificate, by failing
to timely pay use tax on taxable purchase for use in business, or
by failing to either pay the tax or give a properly executed
exemption certificate to the vendor.
(2) Before cancelling or suspending any such certificate,
the tax commissioner shall give written notice of his intent to
suspend or cancel the business registration certificate of the
taxpayer, the reason for the suspension or cancellation, the
effective date of the cancellation or suspension, and the date,
time and place where the taxpayer may appear and show cause why
such business registration certificate should not be canceled or
suspended. This written notice shall be served on the taxpayer
in the same manner as a notice of assessment is served under article ten of this chapter, not less than twenty days prior to
the date of such show cause informal hearing. The taxpayer may
appeal cancellation or suspension of its business registration
certificate in the same manner as a notice of assessment is
appealed under article ten of this chapter: Provided, That the
filing of a petition for appeal shall not stay the effective date
of the suspension or cancellation. A stay may be granted only
after a hearing is held on a motion to stay filed by the
registrant, upon finding that state revenues will not be
jeopardized by the granting of the stay. The tax commissioner
may, in his discretion and upon such terms as he may specify,
agree to stay the effective date of the cancellation or
suspension until another date certain.
(c) Refusal to renew. -- The tax commissioner may refuse to
issue or renew a business registration certificate if the
registrant is delinquent in the payment of any tax administered
by the tax commissioner under article ten of this chapter or the
corporate license tax imposed by this article, until the
registrant pays in full all such delinquent taxes including
interest and applicable additions to tax and penalties. In his
discretion and upon such terms as he may specify, the tax
commissioner may enter into an installment payment agreement with such taxpayer in lieu of the complete payment. Failure of the
taxpayer to fully comply with the terms of the installment
payment agreement shall render the amount remaining due
thereunder immediately due and payable and the tax commissioner
may suspend or cancel the business registration certificate in
the manner hereinbefore provided.
(d) Payment of real and personal property taxes required. --
The tax commissioner shall refuse to issue or renew a business
registration certificate if the applicant or registrant is
delinquent in the payment of any real or personal property tax
subject to collection pursuant to the provisions of chapter
eleven-a of this code until the applicant or registrant pays in
full all such delinquent taxes and interest and penalties
applicable thereto. Each application for a business registration
certificate shall be accompanied by receipts or other proof in
form approved by the tax commissioner that all payable real and
personal property taxes, including any applicable interest and
penalties thereon, arising out of all business activities of the
applicant have been paid in full.
NOTE: The purpose of this bill is to require businesses in this
State to remain current in their payment of their personal and
real property taxes at the county level. Currently, a business registration certificate may be denied if a business fails to pay
other taxes administered by the Tax Commissioner. This bill will
require the denial of the certificate if the business fails to
pay its personal and real property taxes.