Senate Bill No. 528
(By Senators Love and Snyder)
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[Introduced February 12, 1999;
referred to the Committee on Finance.]
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A BILL to amend and reenact section four, article twelve, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the business
registration tax generally; and providing for proof of
payment of personal taxes prior to receiving the business
certificate from the tax commissioner.
Be it enacted by the Legislature of West Virginia:
That section four, 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.
§11-12-4. Application for business registration certificate;
issuance of business certificate; effect of
business registration certificate; municipal license taxes.
(a) General rule. -- Except as otherwise provided in this
article, a person shall register with the tax commissioner prior
to engaging in or prosecuting any business activity in this
state. The application for business registration shall be in
such form and contain such information as the tax commissioner
may require; and the applicant shall set forth truthfully and
accurately the information required by the tax commissioner.
Upon receipt of a complete and properly executed application
form, accompanied by payment of (or claim of exemption from) the
tax levied by section three for each business registration
certificate, the tax commissioner shall, if he or she determines
to his or her satisfaction that all of the conditions precedent
to the granting of such certificate have been fulfilled by the
applicant, issue such business registration certificate or
certificates: Provided, That the business registration
certificate or certificates may not be issued or renewed by the
tax commissioner unless the applicant has furnished the receipt provided to show full payment of the personal property taxes for
the calendar year which immediately precedes the calendar year in
which the application is made on all personal property, as
defined in article five of this chapter, which was owned by the
applicant and used in conjunction with the business activity of
the applicant on the tax day for the former calender year. If
the applicant contends that the personal property was not subject
to personal taxation for that year, the applicant must provide
such information and evidence as the tax commissioner requires to
substantiate that contention.
(b) Certificate not to validate illegal activity. -- Nothing
in this article including, but not limited to, any payment of the
tax imposed or issuance of any certificate of registration under
the provisions hereof, shall be deemed determined to legalize any
act, business activity or transaction which otherwise may be
illegal or conducted in violation of law; or to exempt any person
from any civil or criminal penalty prescribed for such illegal
act or violation.
(c) Certificate not to be construed as consent to general
tax jurisdiction of this state. -- The filing of an application for business registration certificate (or for renewal thereof)
and payment of the tax imposed by section three shall not be
construed by the tax commissioner or the courts of this state as
consent, submission or admission by the registrant to the general
taxing jurisdiction of this state, and liability for such other
taxes imposed by this state shall depend upon the relevant facts
in each case and the applicable law.
(d) Power of municipalities to impose license taxes
preserved. -- Notwithstanding the repeal, as of the first day of
July, one thousand nine hundred seventy, of certain license taxes
then imposed by this article and article thirteen-a of this
chapter, the power of a municipality to impose similar license
taxes, by ordinance adopted pursuant to the authority of its
charter or this code, was and is preserved: Provided, That the
municipal license taxes imposed on any business, activity, trade
or employment that was previously subject to a state license tax
under this article or article thirteen-a of this chapter, cannot
exceed the state license tax in effect on such business,
activity, trade or employment of the first day of January, one
thousand nine hundred seventy; and municipalities shall have the power to impose similar penalties as those then provided in this
article and article thirteen-a of this chapter for noncompliance
with such state license taxes.
NOTE: The purpose of this bill is to require businesses to
present a paid personal property tax receipt or proof that no
personal property taxes were due to the tax commissioner upon
application or renewal of their business franchise license.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.