Senate Bill No. 640
(By Senator Bailey, By Request)
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[Introduced February 22, 1999;
referred to the Committee on Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-seven-a,
relating to imposing a tax on providers of legal services.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article twenty-seven-a,
to read as follows:
ARTICLE 27A. LEGAL SERVICES PROVIDER TAXES.
§11-27A-1. Legislative findings.
The Legislature finds and declares that:
(a) The public defender system provides certain legal
defense services for our citizens who are unable to provide for their own legal representation.
(b) Inadequate participation by the membership of the West
Virginia bar in providing pro bono legal defense representation
places a heavy burden upon the state to provide those services.
(c) Attorneys engaged in the practice of law have a moral
and professional duty to make a reasonable contribution to the
representation of those persons who are unable to pay for legal
services.
(d) The tax enacted in this article is intended to represent
a proper participation by the bar in defraying the cost of
maintaining public defender services.
§11-27A-2. Definitions.
As used in this article:
(1) "Attorney" means any person licensed to practice law
before the West Virginia supreme court; and
(2) "Attorney engaged in private practice" means an attorney
who, whether singly or in concert with other attorneys, provides
his or her legal services to the public in general and is paid
for those services on an hourly or contingent fee basis.
§11-27A-3. Imposition of tax; rate; and definition.
(a) Imposition of tax. - For the privilege of engaging in
this state in the business of the private practice of law, there
is hereby levied and shall be collected from every attorney so
engaged a broad-based legal services related tax.
(b) Rate and measure of tax. - The tax imposed in subsection
(a) of this section shall be one half of one percent of the gross
receipts derived by the taxpayer from providing legal services in
this state.
(c) Definition: - "Gross receipts" means the amount received
or receivable, whether in cash or in kind, from clients or third
parties for furnishing legal services as a practicing attorney
engaged in the private practice of law.
§11-27A-4. Special revenue account.
Taxes, penalties and earnings collected under this article
shall be deposited in a special revenue account in the state
treasury to be used by the executive director of public defender
services for purposes of implementing the public defender system
provided under article twenty-one of this code.
NOTE: The purpose of this bill is to impose a reasonable
tax upon the practicing attorneys of this state for money to be
used in providing legal services to the indigent and the poor.
This article is new; therefore, strike-throughs and
underscoring have been omitted.