H. B. 4421
(By Delegates Flanigan and Frederick)
[Introduced February 7, 2000; referred to the
Committee on Finance.]
A BILL to amend and reenact section four, article twenty-four,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to reducing
the corporation net income tax.
Be it enacted by the Legislature of West Virginia:
That section four, article twenty-four, 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 24. CORPORATION NET INCOME TAX.
§11-24-4. Imposition of primary tax and rate thereof;
effective
and termination dates.
Primary tax.
(1) In the case of taxable periods beginning after the
thirtieth day of June, one thousand nine hundred sixty-seven, and
ending prior to the first day of January, one thousand nine
hundred eighty-three, a tax is hereby imposed for each taxable
year at the rate of six percent per annum on the West Virginia
taxable income of every domestic or foreign corporation engaging
in business in this state or deriving income from property,
activity or other sources in this state, except corporations
exempt under section five of this article.
(2) In the case of taxable periods beginning on or after the
first day of January, one thousand nine hundred eighty-three, and
ending prior to the first day of July, one thousand nine hundred
eighty-seven, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, and any
banks, banking associations or corporations, trust companies,
building and loan associations, and savings and loan
associations, at the rates which follow:
(A) On taxable income not in excess of fifty thousand dollars, the rate of six percent; and
(B) On taxable income in excess of fifty thousand dollars,
the rate of seven percent.
(3) In the case of taxable periods beginning on or after the
first day of July, one thousand nine hundred eighty-seven, a tax
is hereby imposed for each taxable year on the West Virginia
taxable income of every domestic or foreign corporation engaging
in business in this state or deriving income from property,
activity or other sources in this state, except corporations
exempt under section five of this article, at the rate of nine
and three quarters percent. Beginning the first day of July, one
thousand nine hundred eighty-eight, and on each first day of July
thereafter for four successive calendar years, the rate shall be
reduced by fifteen one hundredths of one percent per year, with
such rate to be nine percent on and after the first day of July,
one thousand nine hundred ninety-two.
(4) In the case of taxable periods beginning on or after the
first day of July, two thousand, a tax is hereby imposed for each
taxable year on the West Virginia taxable income of every
domestic or foreign corporation engaging in business in this
state or deriving income from property, activity or other sources in this state, except corporations exempt under section five of
this article, at the rate of nine percent. Beginning the first
day of July, two thousand one, and on each first day of July
thereafter for six successive calendar years, the rate shall be
reduced by one half of one percent per year, with the rate to be
six percent on and after the first day of July, two thousand
seven.
NOTE: The purpose of this bill is to reduce the primary
rate of tax on corporations 1/2% a year for 6 years so that the
corporation net income tax rate will be 6% at the end of 6 years.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.