H. B. 4629
(By Delegates Michael and Jenkins)
[Introduced February 27, 1998; referred to the
Committee on Finance.]
A BILL 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, 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 hereby created 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
(e) The provisions of this section are not intended to
affect the provisions of other sections of chapter eleven of the
code 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, and any procedures and rules
adopted shall be drafted in consultation with the tax
commissioner and 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.
NOTE: The purpose of this bill is to authorize the Tax
Commissioner to implement electronic funds transfer methods for
payment of taxes. During the first year, electronic funds
transfer would be required only for personal income tax
withholding by employers when the tax owed during the previous
year was $120,000 or more. Subsequently, other taxes and other
amounts may be established by legislative rule.
This section is new; therefore, strike-throughs and
underscoring have been omitted.