H. B. 4629
(By Delegates Michael and Jenkins)
[Passed March 11, 1998; in effect from passage.]
AN ACT to
amend article ten, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new section, designated section five-t,
relating to the West Virginia tax procedure and
administration act; authorizing electronic funds transfers
procedures to be implemented; authorizing emergency rules;
and setting forth a civil penalty for failing or refusing to
comply with electronic funds transfer requirements.
Be it enacted by the Legislature of West Virginia:
That article ten, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section five- t, to read as follows:
ARTICLE 10. PROCEDURE AND ADMINISTRATION.
§11-10-5t. Payment by electronic funds transfers.
(a) The term "electronic funds transfer" means and includes
automated clearinghouse debit, automated clearinghouse credit,
wire transfer and any other means recognized by the tax
commissioner for payment of taxes.
(b) The tax commissioner may prescribe by emergency rules,
administrative notices, forms and instructions, and the
procedures and criteria to be followed by certain taxpayers in
order to pay taxes by electronic funds transfer methods.
(c) The rules shall set forth the following:
(1) Acceptable indicia of timely payment;
(2) Which type of electronic filing method or methods a
particular type of taxpayer may or may not use;
(3) Which types of taxes to which electronic filing
requirements apply for any given tax year and implementation
dates: Provided, That the type of tax to which electronic funds
transfer requirements apply during the first tax year is personal
income tax withholding by employers;
(4) The dollar amount of tax liability per year which, when
exceeded, requires or permits electronic funds transfer. Unless
and until a legislative rule is promulgated or this section is
amended, no person may be required to pay any tax by electronic
funds transfer if the amount owed for the tax during the
preceding year was less than one hundred twenty thousand dollars;
(5) What, if any, exceptions are allowable, and alternative methods of payment to be used for any exceptions;
(6) Procedures for making voluntary electronic funds
(7) Any provisions needed to implement the civil penalty
created by this section; and
(8) Any other provisions necessary to ensure the timely
implementation of electronic funds transfer payments.
(d) In addition to any other additions and penalties which
may be applicable, there is a civil penalty for failing or
refusing to use an appropriate electronic funds transfer method
when required to do so. The amount of this penalty is three
percent of the total tax liability which is or was to be paid by
electronic funds transfer for any tax for which electronic funds
transfer methods are required to be used by the taxpayer.
(e) The provisions of this section are not intended to
affect the provisions of other sections of this chapter
concerning filing of returns or any other provisions which are
not in direct conflict with this section.
(f) The state treasurer shall adopt any procedures or rules
necessary or convenient for implementing electronic funds
transfers of tax payments authorized by this section and rules
adopted by the tax commissioner. The treasurer shall draft any
procedures and rules adopted in consultation with the tax
commissioner and the procedures and rules may not conflict with this section or rules adopted by the tax commissioner.
(g) The provisions of this section become effective on or
after the first day of January, one thousand nine hundred ninety- eight.